Federal Reserve (Fed) Governor Adriana Kugler told Bloomber TV on Friday that the policy rate is currently moderately restrictive and added that it makes sense to maintain it.
Key takeaways
“Important to keep long run inflation expectations stable.”
“Seeing some upside risk to inflation from tariffs.”
“Economy has been resilient so far.”
“Economic health gives Fed time to make progress on inflation.”
“In time of uncertainty, key to watch different scenarios.”
“Unclear how tariff policy will shake out.”
“First quarter growth data showed front loading ahead of tariffs.”
“There could be a slow down in economy in near term.”
Market reaction
The US Dollar Index struggles to gain traction following these comments and was last seen losing 0.25% on the day at 100.39.
