US jobs market cooling but still resilient, Fed’s Kugler says

FRANKFURT (Reuters) – The U.S. jobs market has started to cool but remains resilient and the Federal Reserve is keen to avoid a drastic weakening of the labor market, Fed Governor Adriana Kugler said in Frankfurt on Tuesday.

“The lower unemployment that we saw in Friday’s jobs report is very welcome,” Kugler told a European Central Bank Conference. “We don’t want a drastic slowdown in the labor market.”

Kugler said there were several metrics suggesting that the labor market was cooling back to its pre-pandemic levels but the Fed does not want it to cool so much that it causes “undue” pain.