Fed's Kashkari Discusses Tariff Impact on Inflation and Economic Growth

According to Odaily, Federal Reserve's Neel Kashkari expressed concerns about the impact of tariffs on inflation and economic growth. While tariffs can lead to a one-time price increase, Kashkari is worried that in the current high inflation environment, they might cause inflation expectations to spiral out of control. He emphasized that the Fed's role is to ensure tariffs do not lead to long-term inflation, though it is too early to determine the current situation. Kashkari also noted that the absence of a trade deficit could lead investors to conclude that the U.S. is no longer the best investment destination. The fluctuations in bond yields and the dollar indicate that global investors are reassessing their investment strategies. He expressed a desire for the U.S. to maintain its dominant position in the global economy and for the dollar to remain the world's reserve currency.