Daly and Kugler Assert That the Fed's Fight Against Inflation Is Far from Over

Fed Board member Adriana Kugler and San Francisco Fed President Mary Daly expressed that they believe the U.S. central bank's work to tame inflation is not yet complete, but they do not want to take risks that could harm the labor market during this process.

While asserting their commitment to controlling inflation, Daly and Kugler also highlighted the need for the Fed to be cautious regarding the condition of the labor market. Kugler stated at the annual American Economic Association conference in San Francisco, "We are fully aware that we are not there yet—no one is popping champagne anywhere. And at the same time... we want the unemployment rate to stay where it is and not rise rapidly."

Speaking on the same panel, Daly added, "At this point, I do not want to see any more slowing in the labor market—maybe it can fluctuate gradually in a given month, but it is certainly not additional slowing in the labor market."