According to Deep Tide TechFlow, on May 12, Federal Reserve Governor Kugler stated that the Federal Reserve is closely monitoring changes in trade policy and their impact on productivity and economic outlook. It is crucial to maintain stable long-term inflation expectations.
The uncertainty surrounding tariffs has affected the economy, and the progress of inflation retreat has slowed. The labor market conditions remain generally stable, making it difficult to assess the basic growth situation of the economy. Changes in trade policy could lead to rising prices and slower economic growth.
Kugler supports keeping interest rates unchanged at the current restrictive level, as the Federal Reserve is in a favorable position to respond to changes in the macroeconomic outlook.