Fed's Kugler still thinks tariffs will have a big impact

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