Federal Reserve Kugler Director, 'Tariff impact spreading... Rate cuts not appropriate'

Adriana Kugler, Board member of the Federal Reserve (Fed), recently expressed a cautious stance on interest rate cuts in relation to the heightened tariff issue. Kugler stated, "The economic impact of tariffs is gradually spreading," and "It is more appropriate not to lower the base interest rate in this situation."

This seems to reflect concerns about the potential rise in import prices due to President Donald Trump's recent policy to strengthen tariffs and the consequent re-spread of inflation concerns. Kugler's remarks suggest that vigilance against inflationary pressures remains within the Fed, and the policy of maintaining interest rates could continue for a while.

Previously, President Goolsbee of the Chicago Fed also mentioned that tariffs could influence monetary policy decisions, so this statement is causing the market to readjust its expectations for the Fed's interest rate policy direction once again.