Federal Reserve's Kashkari: Central Bank's Actions Before September Are Full of Uncertainty
ChainCatcher news, according to Jin Shi reports, Federal Reserve's Kashkari stated that the significant shift in U.S. trade and immigration policies has created uncertainty for Federal Reserve officials in taking interest rate actions before September, as the Trump administration continues tariff negotiations with many countries. Kashkari said on Monday, "Anything is possible, but will the situation be clear enough by September? I'm not sure right now. We need to see what the data says and how the negotiations progress."He added that if the U.S. and other countries reach a trade agreement in the coming months, "this should provide a lot of the clarity we are looking for." The broadly imposed tariffs are believed to have pushed up inflation in the U.S., while also dragging down economic growth due to reduced business investments and households controlling spending. Kashkari and other central bank officials, including Goolsbee, have stated that the threshold for rate cuts in the short term remains high. Kashkari remarked, "This uncertainty may put pressure on economic activity and pose challenges for us, as we are unsure how things will develop, and therefore also uncertain about the direction monetary policy should take."