Fed's Kashkari: Tariffs still a question mark for policy

Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari added his voice to cautionary tones from various Fed officials on Tuesday. Kashkari reaffirmed the Fed's wait-and-see stance on potential tariff impacts on inflation and the broader economy in general before making any hard decisions on moving interest rates.

Key highlights

I'm hearing from businesses, strong fundamentals and nervousness about tariffs.
Tariffs have introduced a complexity.
We're still above 2% inflation target, but have made a lot of progress.
The Fed is in wait-and-see mode to get more clarity on tariff effect on inflation.
I want to get a better sense of what's really going on before we make policy change.
Tariffs still a question mark for policy.
I don't know if dollar exceptionalism will change, and I don't know when a lot of debt becomes too much.