Fed: We still expect an increase in prices and a slowdown in the economy – Adriana Kugler

The governor of the Federal Reserve, Adriana Kugler, said that if the tariffs turn out to be durable, it would focus on how the global supply chains are reorganized in response, while recognizing that the recent reduction of tariffs between the US and China was clearly an improvement in bilateral commercial relations, although the levels of tariffs remain relatively high.

Outstanding comments

• If the tariffs are durable, the only issue that would be observing is how supply chains in the rest of the world are reorganized.
• The reduction of tariffs between the US and China is obviously an improvement in regard to trade between countries, although it is still quite high.
• I still expect an increase in prices and a slowdown in the economy, although not at the same rate as before.
• My basic perspective may have changed in terms of the extent to which we need to use our tools, but not in the address.
• The degree of uncertainty may have decreased a bit, the degree of shock in the offer.
• I am one of those who believes that there could be some permanence in the price increases related to tariffs.
• Given the really adjusted labor market to the pandemic, many companies are reluctant to say goodbye.