It will support further interest rate cuts if inflation progress continues as expected

Federal Reserve Governor Adriana Kugler said Tuesday she would “support further interest rate cuts if inflation progress continues as expected.”

Additional quotes

I want a “balanced approach” to make progress on inflation and avoid an unwanted slowdown in growth and jobs.

Approaching any policy decision will continue to be data dependent.

Hurricane Helene, events in the Middle East could affect the US economic outlook.

If downside risks to employment increase, reducing rates more rapidly may be appropriate.

If incoming data does not provide confidence, inflation moves towards 2%, slowing normalization may be appropriate.

The cooling of the labor market has begun, but the Fed is looking at trends, not single data.

Healthy levels of job creation are very welcome.

Several indicators point to a cooling of the labor market.

We have seen a serious reduction in inflation.

Market reaction

At the time of writing, the US Dollar Index was down 0.12% on the day.