Fed's Kugler warns on uncertainty and tariff risks to economy

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  • Mar 07, 2025

(Reuters) - Federal Reserve Governor Adriana Kugler said Friday it still remains challenging getting a handle on the impact of the Trump tariff regime, in a climate where these sorts of policies could lead to higher inflation pressures.

“There is still, I would say, considerable uncertainty” amid the tariff push and “uncertainty can actually really slow down some of the economic activity” that otherwise would have happened, Kugler said in comments before a gathering held by the Banco de Portugal. She also said the tariffs pursued by the Trump Administration can drive up inflation and later depress growth.