Fed Official: Further Disinflation May Allow Some Rate Cuts This Year Without Hurting Economy

• Inflation could moderate further this year without hurting jobs or growth, setting stage for some rate cuts - Kugler • Weaker consumer spending should slow growth below 2022's 3.1% pace • Kugler's "baseline expectation" is that further disinflation is possible without significantly raising unemployment • With her current expectations for inflation and labor markets, some policy rate cuts this year would be appropriate • Fed held rates steady last month; officials narrowly maintained outlook for 3 rate cuts in 2023