Federal Reserve Governor Neel Kashkari has voiced concerns about tariffs’ impact on inflation and economic growth, according to Odaily. While tariffs may lead to short-term price hikes, Kashkari worries they could exacerbate existing high inflation by triggering an upward spiral in expectations. He emphasized the Fed’s responsibility is to prevent long-term inflation resulting from tariffs. However, it remains unclear what the current situation entails. <r>Kashkari further highlighted that a lack of trade deficit may discourage investors from seeing the US as a prime investment destination. The fluctuating bond yields and dollar value suggest global investors are re-evaluating their strategies. He stressed the U.S.’s ambition to maintain its position as the world’s leading economic power while securing the dollar’s standing as the world’s reserve currency.