Exhibit 1 (Reuters) - Union Reserve Governor Adriana Kugler on Friday signaled she sees the subtle "soft landing" of dropping puffiness amidst a sound Labour market within scope for the U.S. economy, noting that ostentation expectations rest anchored and the Fed has avoided a wage-Mary Leontyne Price whorl.

"I am cautiously optimistic that we will see continued progress on disinflation without significant deterioration of the labor market," Kugler said in remarks inclined for saving to the Stanford Establish for Economical Insurance policy Explore Institute's time period economical peak.

Kugler notably did not lay prohibited her expectations for when or how dissolute the FRS should reduce its insurance rate, which it drove up apace in 2022-2023 and has held in the 5.25%-5.5% rove since final July.

But she he said her optimism stems from how chop-chop Federal Reserve System range hikes and the change of mind of the issue shocks that contributed to pretentiousness get relieved cost pressures even out as the Labor Department commercialise stayed potent.

Inflation surged post-pandemic because of precipitous and rapid constraints on the add of both goods and labor, to which businesses were non able-bodied to apace adjust, she illustrious. Simply it has dropped well-nigh as rapidly, as supply of both workers and goods came on credit line last class.

Wage growth slowed as a result, she noted, in all probability putt to reside the scourge of a wage-price helical that could get allowed rising prices to intrench.

And ostentatiousness expectations give remained anchored, with businesses resetting prices less oft than at the meridian of the puffiness upsurge - a sign, she said, of chilling puffiness. (Reportage by Ann Saphir, Editing by Snick Zieminski)