Federal Reserve Governor Kuggler still believes that tariffs will have a significant impact.

Federal Reserve Board Governor Kapler said on Monday that the Trump administration's tariff policy could push up inflation and drag down economic growth, even after tariffs are reduced. Kapler said, "Trade policy is evolving and may continue to change, even this morning. However, even if tariffs remain near their current announced levels, they appear to be able to have significant economic impact." Kapler 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 lowering economic growth."