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Fed’s Kashkari warns of trade war inflation risks, eyes data for Dec cut

Minneapolis Fed President Neel Kashkari conveyed cautious optimism about the US. inflation outlook during his appearance on CBS’s “Face the Nation” on Sunday. Acknowledging that “a lot of progress ” was made in reducing inflation, he emphasized that the job is not yet complete, but noted that the economy is “on a good path” toward 2% inflation.

Kashkari anticipates another rate cut in December, contingent upon forthcoming economic data. He stressed the importance of monitoring “what the data looks like” before making a definitive decision.

Addressing concerns about renewed trade war under the new administration, Kashkari remarked that one-time tariffs “shouldn’t have an effect long run on inflation.”

However, he cautioned that escalating “tit-for-tat” tariff measures between countries could lead to greater uncertainty and have more significant economic implications.

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