Federal Reserve's Kuegel: If the unemployment rate continues to rise, it would be appropriate for the Federal Reserve to cut interest rates ahead of schedule

Federal Reserve Governor Kugler stated that the rebalancing of the job market implies that inflation will fall to 2%. If the unemployment rate continues to rise, it would be appropriate for the Federal Reserve to cut interest rates ahead of schedule. He reiterated his stance that "it would be appropriate to cut interest rates later in 2024."

"The risks faced by inflation and employment are now more balanced. Inflation has continued to decline but is still above target. Data released by non-government sectors provide another perspective on the overall economy." Furthermore, Kugler said he cautiously expects U.S. inflation will progress towards 2%, and the Fed does not want the labor market to cool down excessively.