Fed’s Kashkari Warns Tariffs Could Trigger Stagfla…

From Financial Modeling Prep: 2025-05-27 06:48:00

Minneapolis Fed President Neel Kashkari warns that President Trump’s trade tariffs could lead to stagflation, with slowing growth and rising prices. U.S. consumers have yet to feel the full impact of higher import duties, and the ultimate effect depends on tariff levels and policy uncertainty. Kashkari sees uncertainty in rate adjustments without clear trade deals, urging market participants to monitor upcoming Fed speeches for guidance. The Fed faces a balancing act in managing supply-side shocks and labor-market dynamics to maintain price stability and growth prospects.



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