Fed’s Kugler: No Rate Cuts in Sight as Inflation, Tariffs Fuel Uncertainty

Federal Reserve Gov. Adriana Kugler said the Fed should keep rates steady as inflation remains elevated and new tariffs raise fresh risks.

The Federal Reserve building in Washington on March 14, 2022. Stefani Reynolds/AFP via Getty Images

Federal Reserve Gov. Adriana Kugler said on April 22 that she supports holding interest rates steady because of ongoing inflation risks and new tariffs, in the latest indication that the central bank is not preparing to cut rates anytime soon.

“I will support maintaining the current policy rate for as long as these upside risks to inflation continue, while economic activity and employment remain stable,” Kugler said in a speech on April 21 at the University of Minnesota. “I remain committed to achieving both of our dual-mandate goals of maximum employment and stable prices.”