Fed's Kugler: It is possible that we'll see more persistent inflation due to policies.

Federal Reserve (Fed) Board of Governors member Adriana Kugler hit newswires with cautionary comments on Friday that whiplash trade policies could do a lot of damage, including pinning inflation at a persistently higher level.

Key highlights

It is possible that we'll see more persistent inflation due to policies.

I am paying a lot of attention to inflation expectations.

I don't expect government job cuts to show up suddenly.

I am watching very closely for any sudden job market changes.

Wage gain moderation has helped lower inflation.

I am not that worried about small uptick in unemployment rate.

The February jobs number was a solid number.

There is a high level of uncertainty around tariffs.

There reason to believe that, potentially, there could be more persistent inflation.

Uncertainty is difficult for all parts of the economy.