Fed Governor Kugler: Tariffs could feed into more prolonged inflation than expected

WASHINGTON, April 2 (Reuters) - Rising tariffs in the U.S. could feed into more prolonged inflation than might be expected as companies adapt to higher prices for intermediate goods like aluminum and households perhaps adjust their expectations higher, Fed Governor Adriana Kugler said on Wednesday.

"There may be reasons why tariffs have more prolonged effects," Kugler said. "Aluminum and steel are intermediate goods," she said, and higher taxes on them "affects almost every sector ... It may take longer for that to filter through."