The Federal Reserve's top regulatory official cautioned Thursday against a weakening of bank rules and oversight that could make firms vulnerable to surprise shocks. Fed Vice Chair for Supervision Michael Barr,

Federal Reserve Vice Chair for Supervision Michael Barr urged the Trump administration to continue reforms initiated under Biden and emphasized the importance of keeping the central bank apolitical.

Federal Reserve Governor Adriana Kugler on Thursday said she believes the U.S. central bank should leave its target for short-term borrowing costs in its current 4.25%-4.50% range, where it is exerting moderate restraint on the economy and on still-elevated inflation.

Officials are debating when to restart interest rate cuts, as high prices linger and Trump’s policies add to economic uncertainty.

WASHINGTON (Reuters) - President Donald Trump's initial policy proposals stoked concern at the Federal Reserve about higher inflation, with firms telling the U.S. central bank they generally expected to raise prices to pass through the cost of import tariffs, policymakers said at a meeting held about a week after Trump's January 20 inauguration.