Fed’s Kugler not ready to look past tariff inflation

NEW YORK — At least one Federal Reserve official expects tariffs to lead to higher inflation, and she is worried the effects could be long lasting. 

Speaking before the Economic Club of New York on Thursday, Fed Gov. Adriana Kugler said she sees ways in which higher trade barriers could lead to “persistent” — rather than transitory — price growth.

“I don’t think it is as clear that one can look past these tariffs and that it would be a one-shot thing or a temporary phenomenon,” Kugler said during an onstage conversation with CNBC anchor Sara Eisen. 

In prepared remarks, Kugler described three channels through which price growth could become permanent: rising consumer expectations, lower productivity from businesses and opportunistic price hikes, the last of which she said she…