Fed's Kugler still thinks tariffs will have a big impact

Odaily News Federal Reserve Governor Kugler said on Monday that the Trump administration's tariff policy could push up inflation and drag down economic growth even after tariffs are reduced. "Trade policy is evolving and may continue to change, even as early as this morning," Kugler said. "However, even if tariffs remain near the currently announced levels, they appear likely to have significant economic effects." Kugler pointed out that the current average tariff rate in the United States is still much higher than it has been in decades. She added: "If tariffs remain much higher than earlier this year, the impact on the economy will not change, including pushing up inflation and reducing economic growth." (Jinshi)