09:47 AM EDT, 07/17/2025 (MT Newswires) -- Given the outlook for increased inflation due to tariffs and the solid labor market, it remains appropriate to hold interest rates steady for the time being, Federal Reserve Governor Adriana Kugler said Thursday in remarks to the Housing Partnership Network Symposium.

Kugler noted consumer price data released this week showed more widespread inflation pressures, and that may only be the beginning of a renewed upward trend.

"While many forecasters may have been expecting a sooner and sharper increase in overall inflation, there are many reasons to think that larger effects of tariffs are still coming," Kugler said.

Inflation remains above the Fed's 2% target already even without the expected boost from tariffs, she noted.

"Given the stability in the employment side of our mandate, with the unemployment rate still at historically low levels, elevated short-run inflation expectations, and goods inflation rising due to the upward pressure from tariffs, I find it appropriate to hold our policy rate at the current level for some time," Kugler said. "This still-restrictive policy stance is important to keep longer-run inflation expectations anchored."

Fed officials are due to enter their 'quiet period' Saturday ahead of the July 29-30 Federal Open Market Committee meeting, where no change in the policy rate is expected.