U.S. Labor Market Stability

(Reuters) – Federal Reserve Governor Adriana Kugler on Friday stated that the U.S. labor market is stable. With the current unemployment rate at 4.2%, it is likely near the central bank’s goal of maximum employment.

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

Earlier this week, the Fed maintained short-term borrowing costs within a range of 4.25%-4.50%.

Fed Chair Jerome Powell noted that while President Donald Trump’s tariffs might increase unemployment and inflation, current data does not reflect these trends, allowing the Fed to delay further action pending economic developments.