Fed's Kashkari says 'too soon to judge' interest rate path
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Federal Reserve Bank of Minnesota President Neel Kashkari said on Tuesday it is too soon to know how short-term borrowing costs may need to be adjusted for U.S. President Donald Trump's tariffs and their expected impact on inflation and the economy. Kashkari's view is widely held by his colleagues and is likely to leave the Fed on hold at its rate-setting meeting in two weeks. "It's too soon to judge what's going to happen to the path of interest rates," Kashkari told the U.S. Chamber of Commerce Global Summit in Washington. While it is "logical" that tariffs alone would not reaccelerate inflation, recent high inflation means the Fed cannot ignore this risk, he said, noting that tariffs will likely also slow growth. That combination would create "tension" for the Fed, he said, since the U.S. central bank cannot fight rising inflation and rising unemployment at the same time. Complicating ma...