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.
Analysis-Chinese savers decry falling deposit rates but still won't spend more
More than 80% of some 5,000 responses chose saving, underlining the challenge for policymakers seeking to shore up demand and economic growth. "The result is one-sided, indicating people are very worried," said the 37-year-old, who works for an internet company in southern China. China's central bank eased monetary policy last week to limit damage from the trade war with Washington.
Reuters
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More than 80% of some 5,000 responses chose saving, underlining the challenge for policymakers seeking to shore up demand and…
Most Federal Reserve officials said last month that the threat of higher inflation was a greater concern than the potential for…
LONDON (Reuters) -Unpredictable White House tariff rhetoric and its impact on currency markets, oil prices and the inflation…
The central bank signals little urgency to cut interest rates despite demands from President Trump for lower borrowing costs.
In a CNBC interview, he said the key now is whether the Fed should be more focused on the labor market or inflation.
Goolsbee said a mixed bag of inflation data coupled with uncertainty over tariffs have given him pause about lowering rates.
