Kugler Calls to Maintain Federal Reserve Rate Steady Amid Inflation Risks

Federal Reserve Governor Adriana Kugler emphasized the need to maintain the federal funds rate in the current range of 4.25%-4.50% for some time to address ongoing inflation challenges and economic uncertainties. In her remarks, she noted that while inflation remains above the 2% target, the labor market is strong, and risks of a downturn have eased. Kugler highlighted the unpredictability of new tariffs under Trump's economic policies, indicating that their impact on consumer prices is still uncertain and will require more data for assessment. She affirmed that the Fed will take a cautious, data-driven approach to policy decisions moving forward. Overall, markets do not expect rate cuts until at least June, reflecting a steady outlook amid existing economic complexities. The Fed's strategy aims to balance inflation control while fostering economic stability.