Fed: We cannot allow inflation expectations to be disagree – Neel Kashkari

The president of the Fed of Minneapolis, Neel Kashkari, warned that US tariffs act as a ballast for economic growth and emphasized the responsibility of the Central Bank to prevent these commercial measures from feeding long -term inflation.

Outstanding comments

• Independent monetary policy leads to better economic results, is fundamental.
• He points out that his own change from Paloma to Halcon and then currently moderate from data analysis.
• Those responsible for the Fed are making the best decision they can, based on data. That is what independence means.
• Tariffs are somewhat inflationary.
• Tariffs also slow growth.
• The only Fed tool is in tension.
• It is too early to judge the path of interest rates.
• It is logical that tariffs lead to a specific increase in prices, but the context of high inflation runs the risk of disagreeing inflation expectations.
• Inflation expectations cannot be allowed.
• Until now, long -term inflation expectations have not moved much. It is the work of the Fed to make sure they do not.
• Fed’s work is to ensure that tariffs do not lead to long -term inflation.
• In order not to have a commercial deficit, investors would have to conclude that the US is no longer the best place to invest.
• It is still early to know if that is happening.
• The increase in bond yield and the drop in the dollar indicate a reevaluation of where global investors want to invest.
• All this can change rapidly, with the resolution of commercial uncertainty.
• We have not seen this level of anxiety since the Covid began.
• The level of interest rates in the US is largely influenced by capital flows.