Fed’s Kugler says US labor market stable, close to maximum employment

Federal Reserve Governor Adriana Kugler on Friday said the U.S. labor market is stable and, based on the current unemployment rate of 4.2% and a range of other measures, is most likely close to the central bank’s goal of maximum employment.

Kugler’s prepared remarks to the Central Bank of Iceland did not otherwise touch on the economic outlook or monetary policy.

Fed May pause cuts again and wait for clarity on tariffs

The Fed earlier this week kept short-term borrowing costs in a range of 4.25%-4.50%.

Fed Chair Jerome Powell said that while President Donald Trump’s tariffs are likely to raise both unemployment and inflation, neither of those trends are yet apparent in the data, allowing the Fed to wait to see what happens in the economy before taking any action.