Minneapolis Fed President Neel Kashkari on Tariffs and Inflation

Minneapolis Federal Reserve President Neel Kashkari highlighted the inflationary risks and growth slowdown associated with tariffs during his speech at the United States Chamber of Commerce Global Summit. "Tariffs are somewhat inflationary and also slow growth," Kashkari stated, emphasizing the delicate balance the Fed must maintain in its monetary policy.

Monitoring the Labor Market

Kashkari also touched on the uncertainty surrounding future interest rate paths, noting the importance of "close attention" to any significant softening in the labor market. Despite these concerns, he described the current labor market as "healthy" and "stale," suggesting a cautious but optimistic outlook.

Data-Driven Policy Decisions

Reflecting on his own policy stance evolution, Kashkari shared that his shift from a dovish to a more moderate position was driven by a thorough analysis of economic data. This approach underscores the Fed's commitment to making informed decisions based on the latest economic indicators.