Federal Reserve Board Member: Tariffs may have a more lasting impact, support staying put

BlockBeats News: On April 3rd, Federal Reserve Governor Adriana Kugler stated early Thursday morning that it is appropriate to maintain current interest rates until the risk of rising inflation subsides. In her prepared speech, she pointed out that changes in government policies, the recent stagnation of the inflation cooling process, and the rise in inflation expectations are all key reasons for maintaining policy patience. As long as the risk of upward inflation persists and economic activity and employment remain stable, I will support maintaining the current policy interest rate. Although theoretically the impact of a one-time tariff on inflation should be short-lived, if it affects multiple sectors of the economy and further raises inflation expectations, its impact may be more lasting. The data shows that since reaching a 40 year high in 2022, the recent improvement in inflation levels has been limited. A survey by the University of Michigan shows that consumer long-term inflation expectations rose to a 32 year high in March. Kugler emphasized the importance of stabilizing inflation expectations, pointing out that both short-term and long-term inflation expectations have increased in the near future. (Golden Ten)