♦️ U.S. Federal Reserve Board member, Adriana Kugler, said today Thursday that she supports keeping short-term borrowing rates at their current level amid expectations of rising inflation if the tariffs imposed by President Donald Trump continue.
♦️ Kugler added in prepared remarks to be delivered at the Economic Club in New York, "Inflation has slowed, and we are already seeing the effects of rising tariffs that I expect will continue to push inflation higher through 2025."
♦️ She clarified: "I see greater risks for inflation at this stage, and potential risks to employment and output growth in the future, which drives me to continue supporting keeping the Federal Open Market Committee's main interest rate at its current level if inflationary risks persist."
♦️ Kugler's remarks, which are among the last public comments from policymakers at the Federal Reserve before their meeting on June 17 and 18, indicate that she considers inflation to be the most pressing concern for the Federal Reserve.