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Fed's Kugler Warns Tariffs Could Keep Inflation High

6/6/2025

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Summary

Story summary

Federal Reserve Governor Adriana Kugler advocates for steady U.S. borrowing costs due to inflation risks linked to tariffs.
She observes a slowdown in disinflation, predicting tariffs will elevate inflation until 2025.
Kugler identifies inflation as a key issue, even with a stable 4.2% unemployment rate.
The Fed is expected to maintain the policy rate between 4.25%-4.50% in future meetings.
She is closely tracking inflation expectations amid a decline in economic activity.

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Story summary

Federal Reserve Governor Adriana Kugler advocates for steady U.S. borrowing costs due to inflation risks linked to tariffs.
She observes a slowdown in disinflation, predicting tariffs will elevate inflation until 2025.
Kugler identifies inflation as a key issue, even with a stable 4.2% unemployment rate.
The Fed is expected to maintain the policy rate between 4.25%-4.50% in future meetings.
She is closely tracking inflation expectations amid a decline in economic activity.