Skip to content
Trending
July 8, 2025‘F1’ is Apple’s highest-grossing theatrical film ever July 9, 2025MongoDB close up 13% after company boosts guidance, cites confidence in cloud-based database service July 11, 2025Fed considering changes to what constitutes a ‘well-managed’ bank July 7, 2025Why Trump tax deductions โ€” for tips, car loans and more โ€” may not carry large benefits for low earners July 7, 2025Tariffs and weaker beer demand are weighing on Modelo owner Constellation Brands July 9, 2025Trump threatens to impose up to 200% tariff on pharmaceuticals ‘very soon’ July 7, 2025Fast-casual restaurants lean on loyalty programs to offset consumer pullback July 8, 2025Trump threatens extra 10% tariff on countries that align with ‘Anti-American’ BRICS policies July 11, 2025Trump announces 35% tariffs on Canada starting Aug. 1 July 11, 2025Trump’s tariffs on Brazil could make your coffee even more expensive
EverydayRead
  • HOME
  • Business
  • Earnings
  • Economy
  • Finance
  • Lifestyle
EverydayRead
EverydayRead
  • HOME
  • Business
  • Earnings
  • Economy
  • Finance
  • Lifestyle
EverydayRead
  Finance  Fed’s Kashkari says Trump tariffs could reheat inflation if they provoke global trade ‘tit for tat’
Finance

Fed’s Kashkari says Trump tariffs could reheat inflation if they provoke global trade ‘tit for tat’

AdminAdmin—November 11, 20240

Neel Kashkari, President and CEO, Federal Reserve Bank of Minneapolis, speaks at the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 7, 2024. 

David Swanson | Reuters

Minneapolis Federal Reserve President Neel Kashkari said Sunday that President-elect Donald Trump‘s tariff proposals could worsen long-term inflation if global trade partners were to strike back.

One-time tariffs, Kashkari said on CBS’ “Face the Nation,” “shouldn’t have an effect long run on inflation.”

More stories

Wholesale egg prices have ‘plunged,’ analyst says โ€” shoppers may soon see some relief

March 18, 2025

Fed’s Kashkari says Trump tariffs could reheat inflation if they provoke global trade ‘tit for tat’

November 11, 2024

Fed officials were divided on whether to cut rates by half a point in September, minutes show

October 10, 2024

China’s electric car boom is expected to slow down in 2025

January 14, 2025

“The challenge becomes, if there’s a tit for tat and it’s one country imposing tariffs and then responses and it’s escalating. That’s where it becomes more concerning, and, frankly, a lot more uncertain,” Kashkari said.

During his first term, Trump essentially sparked a trade war with China when he imposed a series of import taxes on Chinese goods, which triggered the country to retaliate with its own set of tariffs on the U.S.

One of Trump’s primary economic proposals for his second term is to impose universal tariffs on all imports from all countries โ€” with a specifically targeted 60% rate on China.

Economists, Wall Street analysts and industry leaders have repeatedly expressed concerns over the inflationary impact of that hardline trade approach, especially since inflation has just begun to cool from its pandemic-era peaks.

“We’ve made a lot of progress in bringing inflation down,” Kashkari said. “I mean, I don’t want to declare victory yet. We need to finish the job, but we’re on a good path right now.”

The Fed on Thursday passed its second consecutive interest rate cut, continuing its effort to loosen monetary policy as inflation approaches the central bank’s 2% target. Kashkari said he expects another cut to come in December, but that will depend on “what the data looks like” at that time.

As for Trump’s other major policy proposals like a sweeping immigrant deportation plan, Kashkari noted that the inflation threat is still unclear and so the Fed is still taking a “wait and see” approach before adjusting its policy.

Trump and his backers like billionaire Tesla CEO Elon Musk have also been outspoken about their desire to give the president input on Fed policy decisions. The central bank views its political independence as a core feature that allows it to shape monetary policy exclusively based on the health of the U.S. economy, not election incentives.

But Kashkari said he is not concerned about politics permeating Fed decisions.

“I’m confident that we will continue to focus on our economic jobs,” he said. “That’s what should be dictating what we’re doing and that is what’s dictating what we’re doing.”

Former Treasury Secretary Mnuchin says Trump’s top priorities will be tax cuts, Iran sanctions and tariffs
Mattel pulls thousands of ‘Wicked’ dolls off shelves after printing adult web address on packaging
Related posts
  • Related posts
  • More from author
Finance

Fed considering changes to what constitutes a ‘well-managed’ bank

July 11, 20250
Finance

Most Fed officials see rate cuts coming, but opinions vary widely on how many, minutes show

July 10, 20250
Finance

BlackRock keeps its foot on the private-markets pedal with another acquisition

July 8, 20250
Load more
Read also
Finance

Fed considering changes to what constitutes a ‘well-managed’ bank

July 11, 20250
Economy

Trump announces 35% tariffs on Canada starting Aug. 1

July 11, 20250
Earnings

Levi Strauss raises sales guidance, says it will absorb some tariff costs for now

July 11, 20250
Business

Trump’s tariffs on Brazil could make your coffee even more expensive

July 11, 20250
Finance

Most Fed officials see rate cuts coming, but opinions vary widely on how many, minutes show

July 10, 20250
Economy

Inflation expectations drift back down to pre-tariff levels, New York Fed survey shows

July 10, 20250
Load more
ยฉ 2023, All Rights Reserved.
  • About Us
  • Advertise With Us
  • Contact Us
  • Disclaimer
  • Cookie Law
  • Privacy Policy
  • Terms & Conditions