Online reported that on Thursday, both Fed policymakers said they believed that current high inflation was a more urgent risk than a slowdown in the labor market, a view that implied support for maintaining monetary policy in its current state for a longer period of time. Federal Reserve Governor Kugler said at the Economic Club of New York on Thursday: "At this juncture, I believe there are greater upside risks to inflation and potential downside risks to employment and output growth in the future. If upside risks to inflation remain, this allows me to continue to support maintaining the FOMC policy rate at current levels." She said tariffs are already driving prices up, and while there are some signs the economy is cooling,"there has not been a significant slowdown yet." Later in the day, Kansas Federal Reserve Chairman Schmid expressed optimism that the economy would avoid recession as it has recently done. Although the extent of the tariff's drag on growth and employment is unclear, he also said he is more concerned about the imminent impact of tariffs on inflation. "Tariffs may push prices up in the coming months," Schmid said. The extent of the increase is unknown, and the impact "may not be fully felt for some time."