April 7 (Reuters) - Federal Reserve Governor Adriana Kugler on Monday said that some of the recent rise in goods and market-services inflation may be "anticipatory" of the effect of the Trump administration's current policies, adding that it's a "priority" for the Fed to keep inflation in check.
"If you think about tariffs, for example, this measure of core import prices but also the shortages index may be really important to consider" in modeling what drives inflation, Kugler said at Harvard University at the conclusion of a lecture on inflation dynamics.
"We, all colleagues at the Fed, are very committed still to our 2% target and want to keep inflation expectations well anchored, which should be a priority now," Kugler said, noting that short-term inflation expectations have risen but longer-term they remain well-anchored. "It should be a priority to make sure that inflation doesn't move up."
Asked about households fearful of another increase in prices from the new tariffs, Kugler said she will not comment directly on whether tariffs are worth it, and that it remains to be seen how much businesses end up passing on higher costs to consumers. She said she understands the pain to households from rising prices and that is why the Fed needs to keep its focus on that.
Reporting by Ann Saphir; Editing by Andrea Ricci
