Kugler Says Fed Should Hold Rates Steady for 'Some Time'

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Transcript

00:00I see that the U.S. economy has remained resilient, with labor markets appearing to be stable and close to full employment.

00:10Inflation, meanwhile, remains above the FOMC's 2% goal and is facing upward pressure from implemented tariffs.

00:20Moreover, I judge that inflation is likely to increase farther as tariff effects build up during the rest of the year.

00:30Given the stability in the employment side of our mandates, with the unemployment rate still at historically low levels,

00:38elevated short-run inflation expectations, and goods inflation rising due to the upward pressure from tariffs,

00:46I find it appropriate to hold our policy rate at the current level for some time.

00:53This still restrictive policy stance is important to keep longer-run inflation expectations well anchored.