Inflation Progress Slows, Fed Governor Kugler Highlights Concerns

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

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 anticipate further price increases. "Much of this uncertainty appears to be tied to trade policy," she remarked, highlighting the complex factors influencing inflation expectations.

Fed's Monetary Policy Stance

Kugler reassured that the Fed's current monetary policy is "well positioned" to adapt to new developments. She emphasized the committee's readiness to maintain the current rate while monitoring incoming data and the effects of new policies, ensuring a cautious yet flexible approach to economic management.