Federal Reserve Governor Adriana Kugler said inflation has fallen significantly, but warned recent progress has been slow and that considerable uncertainty remains.

In remarks that suggest she is in no hurry to cut interest rates, Federal Reserve Governor Adriana Kugler on Friday said she expects continued solid economic growth this quarter, and noted slow progress on inflation and a lack of clarity on how the Trump administration's policies will affect the economy.

Chicago Federal Reserve President Austan Goolsbee warned on Wednesday that ignoring the potential inflationary impact of tariffs would be a mistake, citing the COVID-19 pandemic experience where supply chain disruptions drove up inflation.

Trade wars could lead to supply-chain disruptions and an inflation spike similar to the early pandemic, Austan Goolsbee said.

There’s a growing sense among some inside the Federal Reserve that President Donald Trump’s willingness to use tariffs as a tool to accomplish his administration’s aims will end up boosting inflation,

The full suite of tariffs sought by the Trump administration would have created notable upward pressure for already high levels of inflation, a report by the Federal Reserve Bank of Boston released on Thursday said.

Federal Reserve Bank of Dallas President Lorie Logan said interest rates may already be near a neutral level, potentially obviating the need for further cuts even if inflation continues to cool.