by Reade Pickert
Federal Reserve Governor Adriana Kugler said tariffs will likely put upward pressure on prices and have a bigger economic effect than previously expected.
Kugler repeated that she supports holding borrowing costs steady until inflation risks abate, and while economic activity and employment remain stable.
“The economy is facing heightened uncertainty, with upside risks to inflation and downside risks to employment,” Kugler said Tuesday in remarks prepared for an event at the University of Minnesota in Minneapolis.
“This month, we learned that the tariff increases are significantly larger than previously expected,” she said. “As a result, the economic effects of tariffs and the associated uncertainty are also likely to be larger than anticipated.”
President Donald Trump announced sweeping tariffs on US trading partners earlier this month, alongside duties exceeding 100% on China. While considerable uncertainty remains around the levies, economists generally expect them to weigh on economic growth and boost inflation.
In a question-and-answer session following her prepared remarks, Kugler said she didn’t believe recent market turmoil was a sign the public had lost confidence in the central bank.
“The uncertainty is not coming from us,” Kugler said.
Kugler focused much of her speech on monetary policy transmission. She highlighted the time it takes for Fed policy to work through the economy, adding that such lags are key to why officials must be proactive in understanding the impact of different shocks.
“It is important for monetary policymakers to broadly examine all available information, including market-based measures, surveys and anecdotal reports, to understand what is happening in the economy as early as possible because, as I discussed, it takes time for policy to have an impact,” Kugler said.
Copyright Bloomberg News
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
