Federal Reserve Governor Kugler Still Believes Tariffs Will Have a Significant Impact

Federal Reserve Governor Kugler stated on Monday that the Trump administration's tariff policy could increase inflation and drag down economic growth, even after tariffs are reduced. Kugler said, "Trade policy is evolving and may continue to change, even just this morning. However, even if tariffs remain near the levels currently announced, they seem likely to have significant economic impacts." Kugler pointed out that the current average tariff rate in the United States is still much higher than it has been in decades. She added, "If tariffs remain much higher than earlier this year, the impact on the economy will not change, including increasing inflation and reducing economic growth."