Federal Reserve governor Adriana Kugler said on Monday that it is currently hard to judge the underlying pace of growth of the U.S. economy. "While the latest data show a resilient economy, I expect growth this year to be slower than last," she added and noted that the disinflationary process has slowed.
The policymaker also emphasised that trade policies are evolving and are likely to continue shifting, even as recently as this morning. According to Kugler, these policies appear likely to generate significant economic effects even if tariffs stay close to the currently announced levels, and the uncertainty associated with these tariffs has already generated effects on the economy through front-loading, sentiment, and expectations.
Fed's governor noted that she is closely monitoring the effects of changing trade policies, which she sees as likely to significantly impact both the U.S. and global economies in the near future. She concluded by expressing confidence that the Fed’s current monetary policy stance is well-positioned to respond to any changes in the macroeconomic environment.