Fed’s Kugler Says Tariff Impact Likely Larger Than Expected (1)

Federal Reserve Governor Adriana Kugler said tariffs will likely put upward pressure on prices and have a bigger economic effect than previously expected.

Kugler repeated that she supports holding borrowing costs steady until inflation risks abate, and while economic activity and employment remain stable.

“The economy is facing heightened uncertainty, with upside risks to inflation and downside risks to employment,” Kugler said Tuesday in remarks prepared for an event at the University of Minnesota in Minneapolis.

“This month, we learned that the tariff increases are significantly larger than previously expected,” she said. “As a result, the economic effects of tariffs ...