According to TechFlow, on May 12, Federal Reserve Board member Kugler said that the Federal Reserve is closely monitoring changes in trade policies and their impact on productivity and economic prospects. It is crucial to keep long-term inflation expectations stable.
Uncertainty about tariffs has weighed on the economy, slowing progress in reducing inflation. Labor market conditions are broadly stable, making it difficult to judge underlying economic growth. Shifts in trade policy could lead to higher prices and slower growth.
Kugler supports keeping interest rates unchanged at their current restrictive levels, saying the Fed is well positioned to respond to changes in the macroeconomic outlook.