Fed Needs More Clarity on Tariff Impact on Prices, Kashkari Says

Federal Reserve Bank of Minneapolis President Neel Kashkari said the US central bank needs more clarity on how tariffs will impact prices before adjusting policy, even as recent inflation data has been “quite positive.”

“The last two or three months the inflation data we’ve been getting has been quite positive, it suggest that the disinflationary path I described has been on track,” Kashkari said Tuesday at an event in La Crosse, Wisconsin. “But it isn’t obvious that we’ve seen the full effects of the tariffs yet so we’ve been taking our time to try to get a sense of what’s really going on before we made any dramatic changes in our policy outlook.”