Federal Reserve Governor Adriana Kugler said on Thursday U.S. inflation still has "some way to go" to reach the Fed's 2% target, and that its path toward that goal continues to be bumpy.

Business leaders across the country told Federal Reserve officials that they will try to pass along to consumers any higher costs resulting from potential Trump tariffs, according to minutes of the central bank’s January meeting,

Inflation remains the priority for Fed officials speaking in Phoenix at a bankers conference. Jobs and the potential for surprises also are concerns.

The Fed held its benchmark interest rate in the 4.25%-4.50% range at its meeting last month, and is expected to do so again at its March 18-19 meeting as officials wait for more clarity on how the economy responds to new tariffs and stricter immigration rules.

As the Federal Reserve focuses achieving 2% inflation in setting monetary policy, so Trump’s policies, especially on tariffs, are likely to complicate the picture.