No Question of Stagflation

Minneapolis Fed President has warned that the tariff picture might not be clear enough by September, prompting the Fed to maintain its wait-and-see approach for a longer period, adding that "there's no question that the shock of tariffs are stagflationary

Daily Updates:

• While a number of Fed officials have pushed the expected date of the next Fed rate cut to beyond the summer due to tariff uncertainty, Neel Kashkari has presented a slightly more hawkish outlook on monetary policy. The Minnea

  polis Fed President said “anything is possible” and asked 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”. 

• According to Kashkari, “there’s no question that the shock of tariffs are stagflationary, the question is going to be ultimately how high (the tariffs) settle at, and how long a period is this uncertain environment and the tariffs are going to last”.