Fed’s Kugler backs holding rates steady as tariffs fuel inflation

US Federal Reserve Governor Adriana Kugler said on Thursday that interest rates should remain on hold “for some time,” pointing to rising inflation pressures fueled by tariffs.

Speaking at a Washington event hosted by the Housing Partnership Network, Kugler said the labor market remains strong, but short-term inflation expectations are elevated and goods prices are climbing.

“Maintaining the current policy rate is appropriate,” she said, adding that the Fed’s restrictive stance is crucial to keeping long-term inflation expectations anchored.

STAFF REPORTER