by Reuters
Kitco
April 7 (Reuters) – Federal Reserve Governor Adriana Kugler on Monday said that some of the recent rise in goods and market-services inflation may be “anticipatory” of the effect of the Trump administration’s current policies, adding that it’s a “priority” for the Fed to keep inflation in check.
“If you think about tariffs, for example, this measure of core import prices but also the shortages index may be really important to consider” in modeling what drives inflation, Kugler said at Harvard University at the conclusion of a lecture on inflation dynamics.
“We, all colleagues at the Fed, are very committed still to our 2% target and want to keep inflation expectations well anchored, which should be a priority now,” Kugler said, noting that short-term inflation expectations have risen but longer-term they remain well-anchored. “It should be a priority to make sure that inflation doesn’t move up.”