Federal Reserve Board Member Adriana Kugler stated in her recent remarks that inflation currently poses a greater risk than weak employment.
Kugler stated that the impact of customs duties on prices has not yet been fully observed, saying, "Inflation will be the primary effect; other effects will emerge over time." Kugler noted that the inflation experience during the pandemic is still influential on expectations and pointed out that inflation arising from customs duties may not be a one-time effect.
"My current focus is on inflation," Kugler said. Once the tariffs are fully in effect, we can start talking about other impacts; But that hasn't happened yet," he said.
Kugler stated that the tax regulation introduced during President Donald Trump's term may generally not be contractionary but could rather have demand-stimulating effects, adding that this could put pressure on prices.
Referring to the labor market, Kugler stated that unemployment is still at historically low levels, and that the decrease in immigrant inflows could further tighten the labor market. Stating that these effects may begin to be felt towards the end of the year in some sectors, Kugler said that it is too early to expect large-scale job losses due to artificial intelligence.
On the other hand, U.S. Secretary of Commerce Lutnick reminded that July 9 remains the deadline for trade agreements.
*This is not investment advice.
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HOT MOMENTS: Senior FED Official Makes Important Statements About the US Economy!
Federal Reserve Board Member Adriana Kugler stated in her recent remarks that inflation currently poses a greater risk than weak employment.
Kugler stated that the impact of customs duties on prices has not yet been fully observed, saying, "Inflation will be the primary effect; other effects will emerge over time." Kugler noted that the inflation experience during the pandemic is still influential on expectations and pointed out that inflation arising from customs duties may not be a one-time effect.
"My current focus is on inflation," Kugler said. Once the tariffs are fully in effect, we can start talking about other impacts; But that hasn't happened yet," he said.
Kugler stated that the tax regulation introduced during President Donald Trump's term may generally not be contractionary but could rather have demand-stimulating effects, adding that this could put pressure on prices.
Referring to the labor market, Kugler stated that unemployment is still at historically low levels, and that the decrease in immigrant inflows could further tighten the labor market. Stating that these effects may begin to be felt towards the end of the year in some sectors, Kugler said that it is too early to expect large-scale job losses due to artificial intelligence.
On the other hand, U.S. Secretary of Commerce Lutnick reminded that July 9 remains the deadline for trade agreements.
*This is not investment advice.
Follow our Telegram group, Twitter account, and Youtube channel for exclusive news, analyses, and on-chain data! Also, start live price tracking immediately by downloading our Android and IOS applications!