Kashkari: Interest Rates Could Rise Despite Tariff Impacts

Federal Reserve official Neel Kashkari has indicated that adjustments to monetary policy, including both interest rate increases and decreases, remain a viable option despite challenges posed by tariff policies. His remarks were made in an interview with Odaily. Kashkari highlighted how these tariffs create obstacles to effectively altering interest rates, even when economic indicators like the labor market and overall GDP show signs of potential weakness. This suggests that the Fed may hold off on cuts despite weakening conditions, as the threshold for rate reduction remains high.