May 27, 2025
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14:35Now PlayingFederal Reserve Bank of Minneapolis President Neel Kashkari said major shifts in US trade and immigration policy are creating uncertainty for Fed officials to move on interest rates before September, as the Trump administration continues tariff talks with numerous governments.
“Anything is possible,” Kashkari said Monday in an interview on Bloomberg Television in Tokyo. But will the picture “be clear enough by September? I am not sure right now. We will have to see what the data says, but also how the negotiations are going,” he said. If trade deals are struck between the US and other nations over the next few months, “that should provide a lot of the clarity we are looking for,” he added.
While the US economy entered 2025 on solid footing, President Donald Trump’s tariffs and substantial changes to the country’s immigration policy have prompted businesses to rethink investment plans.
Widespread levies are seen pushing up US inflation while denting growth as firms pull back investment and households rein in spending. Kashkari and other central bank officials, including Chicago Fed chief Austan Goolsbee, have said the bar remains high for cutting interest rates in the near term.
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