Fed Governor Adriana Kugler stated on March 25, 2024, that the Fed’s restrictive interest rate policy is positioned effectively. However, the process of reducing inflation to the 2% target has slowed since summer 2024.

Kugler noted an uptick in goods inflation, which is “unhelpful” for inflation control efforts. Recent data indicates a rise in inflation expectations among American consumers, which requires close attention from policymakers.

Kugler expressed concerns related to potential tariff changes proposed by the Trump administration that could impact inflation rates. Despite some softening in retail activity, the labor market remains stable.