Minneapolis Federal Reserve President Neel Kashkari emphasized uncertainty as a key concern for the Fed and US businesses during his speech in Tokyo early Monday. He described the ongoing tariffs shock as “stagflationary,” warning that extended tariffs increase the risk of stagflation, though the scale remains unclear.
Kashkari noted the Fed is currently in a “waiting to observe” mode, stressing the need to assess incoming data and the progress of trade negotiations before drawing conclusions. “Not sure if the picture will be clear enough by September,” he added, emphasizing that successful trade deals in the coming months could provide much-needed clarity.
He also pointed out that immigration policy is causing businesses to reconsider investment plans, adding another layer of economic uncertainty.
In response to Kashkari’s remarks, the US Dollar Index (DXY) showed a mild rebound but remained down 0.30% on the day, trading near 98.82 as of this writing.
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