Fed’s Kugler, citing inflation risks, supports steady policy rate

Adriana Kugler stated that the significant import tariffs are expected to elevate prices, advocating for keeping short-term rates steady at 4.25%-4.50%. She is attentive to the effects of trade and economic changes on inflation and the labor market.

Kugler recognized recent financial market volatility as a potential threat to future growth. She noted that while the labor market appears stable, inflation progress is lagging, with short-term expectations rising and the Fed’s long-term target still unmet.