In an interview with Stephen Lehman on CNBC, Adriana Kugler, a member of the US Federal Reserve, confirmed that the US economy ended 2024 in a strong and reassuring manner, pointing to its high flexibility in dealing with various economic challenges.#bitcoin
Kogler explained that the economy witnessed a continued contraction process, while the labor market maintained its cohesion, recording a gradual slowdown without leading to a major deterioration, as the unemployment rate remains at historically low levels, reflecting a remarkable stability in the market.
Federal Reserve Bank of New York Adriana Kogler told CNBC's Stephen Lehman that the gradual slowdown in the labor market has helped keep real wages high, boosting people's purchasing power and supporting the economy as a whole. She stressed that the stability and gradual cooling of the labor market is a key factor in achieving economic balance.
She also expressed great optimism about productivity, considering it one of the main drivers that contributed to enhancing economic performance, as it played a positive role as a catalyst for growth, while deflationary pressures continued.
Discussing external factors affecting the US economy, Federal Reserve Board member Kogler said immigration was one of the factors that contributed to the stability of the US labour market in recent times.
However, she expressed uncertainty about future trends in migration and its potential impact on the economy in the future. She also expressed concern about trade policies, particularly tariffs, noting that the impact of these policies will depend largely on their duration and their suitability to current economic conditions.
On monetary policy, Adriana Kogler explained that the US Federal Reserve continues to deal with a wide range of economic scenarios to ensure market stability and achieve inflation targets.
She added that the bank is closely monitoring inflation developments to see if its pressures will continue in the long term, stressing that economic data will remain the decisive element in determining the path of monetary policy.
Kogler noted that there is growing discussion within the US Federal Reserve about the possibility of postponing a decision on cutting interest rates in the future, reflecting a cautious and deliberate approach by monetary policymakers.
In closing her remarks, Kogler declined to comment on the policies that the next US administration might adopt, stressing that the Fed’s current priorities are focused on ensuring the stability of the US economy by monitoring fundamental indicators. She also highlighted the importance of both productivity and immigration in supporting economic balance.$BTC