Fed's Kashkari Cautions Tariffs Emerging As Inflation Driver

2025-09-03 03:20:36

(MENAFN- AsiaNet News)

Minneapolis Fed President Neel Kashkari warned on Thursday that tariffs are driving up goods inflation, complicating the central bank's path back to its 2% target.

Speaking at a fireside chat at Minnesota Women's Economic Roundtable, Kashkari said inflation remains“too high,” even as the labor market shows signs of cooling and the broader economy trends toward a soft landing.“We need to watch this before we come to any firm conclusions,” he noted, highlighting the risk that trade policy could add fresh price pressures.

Kashkari noted that other parts of the economy, such as the housing sector, are experiencing declining inflation.“This is happening as we expected. It doesn't mean home prices are falling. This doesn't mean rents are falling. It means the growth of rents and growth of home prices are slowing down,” he said. As a result, Kashakri said that average inflation is "going sideways.”

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