Fed official rules out near-term rate cuts

Federal Reserve Governor Adriana Kugler said the central bank shouldn’t cut interest rates in the near term, as tariffs imposed during Donald Trump’s presidency continue to push prices higher.

In remarks prepared for a housing forum in Washington, DC, today, July 17, she said maintaining a tight monetary stance is essential to contain inflation and keep long-term expectations anchored.

Kugler noted that inflation remains above the Fed’s 2% goal and is under renewed pressure from tariffs. At the same time, the labor market is stable, with ongoing hiring and unemployment at 4.1%, near full employment.

She said further price increases are likely later this year due to trade policies, noting that both headline and core inflation have made no progress toward the Fed’s target over the past six months.