Fed's Kugler Warns Inflation Progress Stalls, Supports Rate Freeze

Federal Reserve officials, including Lisa Cook and Ariana Kugler, have expressed concerns that rising tariff-related inflation pressures could hinder the possibility of interest rate cuts in the near future. Cook noted that the Fed should remain patient while monitoring economic data, pointing out that uncertainty from tariffs could weaken the economy. Kugler emphasized that the Fed supports maintaining current interest rates due to persistent upside risks to inflation, with recent data suggesting progress toward the 2% inflation target may have stalled. Despite some moderation in the labor market, both officials highlighted the need for caution as inflation expectations rise. The overall sentiment is that the Fed is poised to remain vigilant and responsive to economic changes, particularly regarding inflation dynamics. Both officials will continue to assess incoming data to inform their policy decisions going forward.