CUGGAR says the Fed must have interest rates on the background of inflation risks

Inflation may be sticky, while prices can take again, the Federal Reserve Governor Adrian Kugarir has warned, signaling that the Central Bank should support stable interest rates during this time.

“I am actually very concerned about some perseverance in the inflation we saw,” she said in Sylvia Omar CNBC during a fire at the Conculiar Policy and Labor Market.

She pointed to the recent acceleration of inflation expectations, which, she said, closely monitors how the enterprises set prices and as employees are negotiating wages. This, in turn, means that they could have inflation.

A few recent data points have shown concern for consumers about increasing prices with the latter Consumers’ trust index from the conference show The 12-month inflation expectations jumped up to 6% in February, which is compared to 5.2% in the previous month.

“I was one of those who strongly supported any policy that really supports inflation expectations. And I believe it is critical and it is good for us,” Kugler said.

Going forward, the Fed Keler noted that prices could also rise.

“I think you know that there is reason to believe, potentially, which may be the increase in prices and more stable inflation,” she said, adding that higher prices may come from “some politicians who may be considered and some who have already been accepted.”

Such a policy can also affect economic activity, Kogleir noted.

“We probably have to consider some of this perseverance I mentioned, from the various categories of prices, with the -in -wishes of inflation expectations, and perhaps because some new politicians that ahead of us,” said Korkyar.

Concerning the often changed events related to the decision of the US administration on the introduction of tariffs on goods, imported from key trading partners, including negotiations and potential retaliaties, the Fed said that there is still “significant uncertainty”.

Analysts and economists have widely noted that they are expecting potential tariffs, and any mutual measures above for countries on both sides of measures.

In prepared comment At the conference, Kugarir also warned about the risk of inflation, coordinating the forecast at the Fed interest rate.

“Given the recent increase in inflation expectations and main inflation categories that have not demonstrated progress against our 2 percent goal, it may be advisable to continue the political rate at its current level for some time,” she said in the address.

Fed has reduced interest rates three times since September, at a combined full percentage before holding permanent January. The borrowing rate per night is from 4.25%-4.5%.

According to Fedwatch CME Group toolMerchants of the latest pricing in 97% of the Central Bank are also leaving tariffs without changes when it will occur at the end of this month. Then the picture becomes less clear, and approximately 63% of the rate is also held at the Fed May session before leaning up to a decrease in the rate in June.