Kashkari Highlights Impact of New Tariffs on Fed’s Policy Strategy

Federal Reserve Bank of Minneapolis President Neel Kashkari warned that recently announced tariffs pose significant challenges to the Fed’s monetary policy strategy. The higher and broader-reaching tariffs have a greater economic impact, leading to uncertainty and potential hurdles in adjusting interest rates. He cited comparisons to past tariff events like the 1937 period as examples of economic disruption. Kashkari also addressed market reactions to his comments, highlighting concerns about inflation, GDP contraction, and sector impacts from increased economic instability.