Fed’s Kugler Urges Holding Interest Rates Steady Amid Tariff-Driven Inflation Risks

Federal Reserve Governor Adriana Kugler says the central bank should maintain interest rates at their current elevated levels “for some time” as tariffs imposed by the Trump administration continue to drive inflationary pressures. In a July 17 appearance at the Housing Partnership Network Symposium in Washington, Kugler said a restrictive monetary policy stance will help keep inflation in check as tariff-related price increases are likely driving up consumer costs. While she said the U.S. economy is resilient in the face of tariff-driven uncertainty, the Federal Reserve remains unhappy with the inflation rate, which remains above its 2 percent goal. “I find it appropriate to hold our policy rate at the current level for some time,” Kugler said. “This still-restrictive policy stance is important to keep longer-run inflation expectations anchored.”...