Federal Reserve Official Warns of Tariff Impact on U.S. Economy

According to Odaily, Federal Reserve Board member Kugler stated on Monday that the tariff policies of U.S. President Donald Trump's administration could increase inflation and hinder economic growth, even after tariff reductions. Kugler noted that trade policies are evolving and may continue to change, possibly even as of this morning. However, even if tariffs remain near the currently announced levels, they seem likely to have significant economic impacts. Kugler highlighted that the average tariff rate in the United States is still much higher than it has been in decades. She added that if tariffs remain significantly higher than earlier this year, the economic impact would not change, including raising inflation and reducing economic growth.