A pair of Federal Reserve policymakers signaled on Thursday that they believe higher inflation is for now a more pressing risk than a slowing labor market, a view that implies support for keeping monetary policy on hold for longer.

Federal Reserve Governor Adriana Kugler said larger price increases related to President Donald Trump’s tariffs are likely, and that she supports holding interest rates steady if upside risks to inflation linger.

She currently sees inflation as a bigger risk than deteriorating employment conditions. “My focus right now is on inflation. That will be the first order effect,” Kugler said. “We haven’t seen the full extent of the impact of the tariffs,