Michael S. Derby
(Reuters) – The Governor of the US Federal Reserve Adriana Kugler said on Friday that the growing risks of inflation claimed a long period of permanent Policy of the Central Bank interest rate.
“Considering the recent increase in the expectations of inflation and key categories of inflation that have not shown progress to our goal of 2%, it could be appropriate to continue to maintain a policy rate at its current level for some time,” Kugler said in the text of speech prepared for delivery before conference on monetary policy transmission and labor market in Lisabon by Banco De Portugal.
“Forward, I will continue to closely monitor the effects of politics on the economy and carefully evaluate the incoming data, evolutionary prospects and any changes in the risk of risk” when I think about the future direction of monetary policy, she said.
Kugler spoke because the Fed officials will soon enter their usual peaceful period ahead of the Federal Market Committee of the Federal Market from 18 to 19 March. Officials are expected to maintain their target range overnight, which now lasts between 4.25% and 4.5%. While some officials of Feda held an open door to reduce the rate later in the year, inflation pressures, which could be worse because of the search for President Donald Trump for trade tariffs, they threw a cloud on the road.
The ball, in his remark, noted that the public became more and more concerned about future prices.
“Regardless of the well -balanced labor market, there is an important increase in inflation risk. Some inflation expectations have increased significantly in the last few months, “she said.
Kugler also said that the job market is in the US now in balance and that salaries pressures are not a key initiator of inflation. She said, “I closely follow any signs of changes in the labor market so that we can keep it in a good place that is now, at the same time lowering inflation to our goal.”
(Reporting Michael S. Derby; Mounting Andrea Ricci)
