Fed Governor Adriana Kugler emphasized the importance of keeping inflation expectations well anchored in comments delivered to a Harvard economics class.
She reaffirmed the Fed’s commitment to the 2% inflation target and stressed “It should be a priority to make sure that inflation doesn’t move up”.
Kugler also noted that economic activity in the first quarter may have been stronger than previously anticipated, driven by consumer front-loading ahead of expected tariff hikes.
While the full extent of tariff-related cost pass-through is yet to be seen, she acknowledged the financial strain such developments could place on households. That, she argued, is “exactly why we think we need to keep focus on that.”
