Federal Reserve Governor Adriana Kugler recently highlighted the growing impact of tariffs on the US economy, suggesting a cautious approach to monetary policy. Speaking at a conference, Kugler stated that "The impact of tariffs is beginning to spread. It is appropriate not to cut interest rates." This statement suggests that the Fed is closely monitoring the inflationary pressures stemming from tariffs. As businesses face higher costs due to import duties, they may pass those costs onto consumers, potentially pushing inflation above the Fed's target rate. Given this scenario, Kugler's stance implies that the Fed is prioritizing price stability over stimulating economic growth through interest rate cuts. The central bank likely wants to observe the full effects of tariffs on inflation before making any adjustments to its monetary policy. The Fed will likely remain data-dependent, carefully assessing incoming economic indicators to guide future rate decisions. ```