Federal Reserve Governor Adriana Kugler said on Thursday that she finds it "appropriate" for the Fed to hold its interest rate at the current level for "some time," considering a low unemployment rate and rising inflation.
"Given the stability in the employment side of our mandate, with the unemployment rate still at historically low levels, elevated short-run inflation expectations, and goods inflation rising due to the upward pressure from tariffs, I find it appropriate to hold our policy rate at the current level for some time. This still-restrictive policy stance is important to keep longer-run inflation expectations anchored," Kugler said in a speech at the Housing Partnership Network Symposium in Washington.
The Fed governor noted that the Trump administration's trade policy applies "upward pressure" on inflation and said that she expects further price increases in the second part of the year.
