Kashkari stated that the tariffs introduced by President Trump could have mixed effects on the economy, potentially raising prices while also slowing growth. His perspective aligns with Fed Chair Powell, indicating no immediate rate cuts are necessary.

Declining consumer and corporate sentiment, driven by tariff-related inflation fears, could significantly affect household and business spending. Kashkari expresses concern that ongoing uncertainty may exacerbate this issue.

While acknowledging the progress in reducing inflation, Kashkari emphasized the importance of further efforts to reach the Federal Reserve’s 2% target, stating that completing this task remains their biggest challenge.