TechFlow news, on April 2, according to Jinshi Data, Federal Reserve Governor Adriana Kugler said in the early hours of Thursday that it is appropriate to maintain the current interest rate level until upside risks to inflation subside. In her prepared remarks, she pointed out that changes in government policy, the recent stagnation in the cooling of inflation, and rising inflation expectations are key reasons for maintaining policy patience.
"As long as upside risks to inflation persist and economic activity and employment remain stable, I will support keeping the current policy rate." Although in theory the impact of a one-time tariff on inflation should be temporary, its effects could be more persistent if it spreads across multiple sectors of the economy and further lifts inflation expectations.
Data shows inflation has seen limited improvement recently since reaching a 40-year high in 2022. A University of Michigan survey found that consumer long-term inflation expectations in March rose to their highest level in 32 years. Kugler emphasized the importance of anchoring inflation expectations, noting recent increases in both short-term and long-term inflation expectations.
