Minneapolis Fed President Neel Kashkari reiterated the cautious stance on monetary policy, citing continued uncertainty over the inflationary impact of new tariffs. Speaking at an event overnight, Kashkari said the Fed needs to “go slow” until it gains more clarity, adding, “We still need to get a better assessment of what impact tariffs are going to have on the economy. We just don’t know yet.”
He noted that many businesses are hesitating to raise prices, fearing a backlash if tariffs are later reversed. Kashkari also highlighted the ability of supply chains to adapt and “find their way around and through barriers,” suggesting the inflation impact might be more muted than expected.
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