Fed’s Kugler warns on uncertainty and tariff dangers to economic system

(Reuters) – Federal Reserve Governor Adriana Kugler mentioned Friday it nonetheless stays difficult getting a deal with on the impression of the Trump tariff regime, in a local weather the place these kinds of insurance policies might result in increased inflation pressures.

“There may be nonetheless, I’d say, appreciable uncertainty” amid the tariff push and “uncertainty can truly actually decelerate a few of the financial exercise” that in any other case would have occurred, Kugler mentioned in feedback earlier than a gathering held by the Banco de Portugal. She additionally mentioned the tariffs pursued by the Trump Administration can drive up inflation and later depress development.

(Reporting by Michael S. Derby, Modifying by Franklin Paul)