According to King Ten, Fed Governor Coogler said that inflation may slow further this year, but it will not cause significant losses to employment or economic growth, which creates conditions for a "certain degree" of interest rate cuts. Kugler believes that weak consumer spending should help slow economic growth to below last year's 3.1%, and demand for workers is also slowing. She expects a further slowdown in inflation can be achieved without a sharp rise in unemployment. If the slowdown and labor market conditions develop as expected, some modest reductions in policy rates this year will be appropriate. Underlying inflation, measured by the Fed's preferred indicator, rose at a 2.8% pace in February from the previous month, which she said was "significantly higher" than the 2% target set by policymakers.
