Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, at the Milken Conference at the Beverly Hilton Hotel in Beverly Hills, California, United States on May 7, 2024 Presentation at 2024 Global Conference.
David Swanson | Reuters
minneapolis Fed President Neel Kashkari President-elect said Sunday Donald TrumpIf global trading partners fight back, the tariff proposals could fuel long-term inflation.
Kashkari said one-time tariff CBS’s “Face the Nation” “In the long term, there should be no impact on inflation.”
“If it’s tit-for-tat and one country imposes tariffs and then reacts, then the challenge escalates. That’s where it becomes more concerning and, frankly, more uncertain,” Kashkari said.
During his first term, Trump essentially sparked a trade war He imposed a series of import taxes on Chinese goods, triggering China to retaliate with U.S. tariffs
One of Trump’s main economic proposals for his second term is to impose general tariff A 60% tariff is imposed on all imported products from all countries.
Economists, Wall Street analysts and industry leaders have repeatedly stated worry The impact of this tough trade approach on inflation, especially since inflation is just beginning to cool from its pandemic-era peaks.
“We’ve made a lot of progress in lowering inflation,” Kashkari said. “I mean, I don’t want to declare victory yet. We need to get the work done, but we’re on a good path right now.”
For the second time in a row, the Federal Reserve passed the cut interest ratesEfforts to ease monetary policy continue as inflation approaches the central bank’s 2% target. Kashkari said he expected another rate cut in December, but that would depend on the “data situation” at that time.
As for Trump’s other big policy proposals, such as a comprehensive migrant Kashkari pointed out that the threat of inflation remains unclear, so the Fed will still adopt a “wait-and-see” approach before adjusting policy.
Trump and his supporters, such as billionaire Tesla CEO Musk also expressed their wishes outspokenly. Provide advice to the President Regarding the Fed’s policy decisions. The central bank views its political independence as a core feature, allowing it to set monetary policy based entirely on the health of the U.S. economy rather than electoral inducements.
But Kashkari said he was not concerned about political factors seeping into the Fed’s decision-making.
“I believe we will continue to focus on our economic work,” he said. “That should determine what we’re doing, and that’s determining what we’re doing.”
