Inflation Progress in Question

Federal Reserve Governor Adriana Kugler has raised concerns about the slowing disinflation in the US economy, with some price pressures on the rise. During her speech in New Jersey, Kugler highlighted the uncertainty surrounding the progress toward the Federal Open Market Committee's (FOMC) 2% target, despite a significant drop from the 2022 peak.

Current Inflation Figures

Kugler pointed out that core personal consumption expenditures (PCE) inflation remained at 2.8% in February, mirroring late 2024 levels. While housing services inflation has seen a gradual decline over the past year to 4.3%, it still surpasses pre-pandemic figures.

Rising Inflation Expectations

"Recent months have witnessed an uptick in several measures of inflation expectations, with both consumers and businesses citing new and proposed tariffs as a significant factor," Kugler emphasized.