Inflation risks are tilted to the upside

Federal Reserve Governor Adriana Kugler indicated that rising inflation risks provided a strong argument for keeping interest rates steady for an extended period.

Key Quotes

Sees steady monetary policy ‘for some time’ on recent inflation data. 

Strongly supported steady rate policy at January FOMC. 

Future Fed policy changes will be driven by data. 

There are important upside risks to inflation. 

Flags big rise in some inflation expectations readings. 

Inflation has been moving sideways for a while. 

Job market has substantially rebalanced. 

Wages are not a key driver of inflation pressures.