Federal Reserve Governor Adriana Kugler stated on Monday that recent increases in inflation for goods and market-based services might reflect anticipatory reactions to policy developments under the Trump administration. She underscored that keeping inflation restrained remains a central focus for the Fed.

"Take tariffs, for instance — both core import price trends and indicators like the shortages index are crucial components when analyzing inflationary pressures," Kugler explained during a lecture on inflation dynamics at Harvard University.

She reaffirmed the Fed’s dedication to its 2% inflation goal, emphasizing that maintaining stable inflation expectations is essential, especially now. While short-term expectations have edged up, long-term projections remain stable, she noted. “We must prioritize keeping inflation from gaining momentum,” she added.

When asked about concerns from households over the potential inflationary impact of new tariffs, Kugler declined to take a stance on their broader economic justification. She said it’s still unclear how much of the increased costs businesses will pass on to consumers. Acknowledging the strain that rising prices place on families, she stressed the importance of the Fed’s continued vigilance in managing inflation.