by Reuters
Reuters.com
March 25 (Reuters) – Federal Reserve interest rate policy remains restrictive and well-positioned, Fed Governor Adriana Kugler said on Tuesday, but progress on bringing inflation back to the central bank’s 2% target has slowed since last summer and the uptick in goods inflation seen in the latest data is “unhelpful.”
The recent surge in inflation expectations reflected in surveys of American consumers also warrants close attention, Kugler said in remarks prepared for a U.S. Hispanic Chamber of Commerce event in Washington.
Based on readings of the Consumer Price Index and Producer Price Index released earlier this month, Kugler said it is estimated that the Personal Consumption Expenditures price index the Fed uses to guide its 2% target climbed at a 2.5% pace year-over-year in February, the same as in January.