Federal Reserve member: There are factors that hinder the continuation of declining inflationary pressures.

Federal Reserve member Adriana Kugler clarified in comments released on Thursday that if the path of declining U.S. inflation towards the target is disrupted, the central bank may temporarily halt interest rate cuts.

In addition to this, Kugler addressed the following statements:

• We must keep in mind both sides of the mandate now (i.e., the two goals of the U.S. Federal Reserve: full employment in the labor market alongside price stability).
• If the labor market falters, it would be appropriate to gradually reduce rates.
• There has been significant progress regarding the easing of inflation pressures.
• However, inflation in the housing sector, along with other factors, may complicate matters.

Additionally, Federal Reserve member from Kansas, Jeffrey Schmid, stated that the Federal Reserve's interest rate cuts thus far are an acknowledgment of confidence that inflation is on its way to the Federal Reserve's target of 2%.