Fed's Kashkari calls for steady rates, awaits clarity on tariff impact
TOKYO (Reuters) -Federal Reserve Bank of Minneapolis President Neel Kashkari on Tuesday called for keeping interest rates steady until there is more clarity on how higher tariffs affect inflation, warning against looking through the impact of such supply price shocks. The shock to the economy from President Donald Trump's sweeping tariffs, and uncertainty over U.S. trade policy, are forcing central banks to decide whether to focus on fighting inflation or supporting economic activity, he said. In an ongoing "healthy debate" within the Fed, some policymakers have called for looking through the impact of tariffs as a transitory inflation shock, thereby prioritising support for economic growth by cutting interest rates, he said.
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