Fed's Kugler: Anti-inflation process may have stalled

Odaily News Fed's Kugler said the latest data showed that progress toward the 2% inflation target may have stalled. Given the stability of economic activity and employment, as long as the upside risks to inflation persist, it supports maintaining the current policy rate unchanged. Inflation expectations are rising, and there are upside risks to the upcoming policy changes (to inflation). It is gratifying that the increase in long-term inflation expectations has been small so far. Given the recent high inflation, consumer expectations may be more sensitive to further price increases. Labor market indicators show continued slowdown, but it will not weaken significantly. (Jinshi)