Kashkari Says Fed Well Positioned To Wait For Tariff Impact

Federal Reserve Bank of Minneapolis President Neel Kashkari said the US central bank is well positioned to wait and see how tariff policies impact the economy before adjusting interest rates. 

“The economy is seeming like it’s pretty resilient so far, and so for me right now is the time to get data, see how the tariff negotiations shake out before we reach any firm conclusions about the direction of interest rates,” Kashkari said Wednesday in an interview on CNN.

Kashkari said a pullback in business investment amid tariff uncertainty is an overhang for the US economy. 

“The longer it goes on, the bigger negative effect it has,” Kashkari said.

He added that some businesses are examining different ways to eventually lay off workers and noted that the labor market has already softened some. 

A report out earlier Wednesday showed private-sector hiring decelerated to the slowest pace in two years. 

Fed officials have left interest rates unchanged so far this year, and are expected to do so again when they meet June 17-18.