Fed's Kugler Highlights Slowdown in Inflation Progress

Federal Reserve Governor Adriana Kugler expressed concerns on Tuesday about the deceleration in progress towards achieving the 2% inflation target, noting a resurgence in some subcategories since last summer.

Consumer Expectations and Trade Policy Uncertainties

During her speech at the 2025 US Hispanic Chamber of Commerce Legislative Summit in Washington, Kugler pointed out that recent surveys indicate consumers are bracing for further price hikes. "Much of this uncertainty appears to be tied to trade policy," she remarked, shedding light on the potential external factors influencing inflation trends.

Monetary Policy Stance

Kugler reassured that the Fed's current monetary policy is "well positioned" to adapt to evolving economic indicators. She emphasized a cautious approach, stating, "The committee can react to new developments by holding at the current rate for some time as we closely monitor incoming data and the cumulative effects of new policies."