“The interest rate path,” says Kashkari at the Federal Reserve Council.

(Reuters) said Nil Kacquary, head of the Federal Reserve in Minnesota, on Tuesday, from prematurely, knowing how short -term borrowing costs may need to adjust the tariff for US President Donald Trump and its expected impact on inflation and economy.

The Kashkari view is widely held by his colleagues and the Federal Reserve is likely to be left at his meeting to determine prices within two weeks.

“It is too early to judge what will happen for the interest rate path,” Kashkari told the American Chamber of Commerce in Washington.

He said that although it is “logical” that the customs tariff alone will not interact with inflation, the recent high inflation means that the Federal Reserve cannot ignore this danger, noting that the customs tariff will also slow down. He said that this mix will create “tension” for the Federal Reserve, because the US Central Bank cannot fight increased inflation and high unemployment at the same time.

Kashkari said that the complexity of matters is a very uncertainty about American commercial policy. He said that this can be solved quickly if the trade negotiations lead to agreements, but until then, families and companies prevent spending and investment, which is another blow to economic growth.

“There is a level of anxiety, again, I have not seen it since Kovid was hit,” Kashkari said.

When asked about Trump, who is pressuring the President of the Federal Reserve, Jerome Powell, to reduce interest rates, Kashkari said that the independence of monetary policy is “founding” for American economic success. Trump and others have been reversed in his administration that the Federal Reserve is making political decisions for political reasons.

He now indicated that Kacquari preferred the easiest monetary policy during the term of Democratic President Barack Obama II and the first period of Trump, and became sincere during the term of President Joe Biden, “may be a place in the center” in politics.

“If you turn from the dove to the falcon to the moderate, is this because of the policy? No, this is because of changing the economic environment and changing data.”

Kashkari was previously as a Republican of California ruler, and worked in the Bush administration during the global financial crisis.

He said that Powell maintains the price setting committee at the Federal Reserve, which focuses on the laser on two goals for the Central Bank to stabilize prices and completely-not politics.

He said that the additional pressure on the American economy can come from the last rise in the treasury revenues and the weakness of the dollar, as global investors reckon whether they will continue to invest in the United States, which is the world’s prominent capital.

He said that the low investment in the country would reduce the trade deficit and increase the costs of borrowing for American companies and families in the long run. This can limit the American ability to issue debts and reduce the position of the dollar as a backup currency in the world.

“If we do not promise the economy that investors around the world say, hey, this is a prominent competitive economy, it is possible that we have a lower runway,” Kashkari said.

“I hope America will maintain its prominent position in the global economy, and therefore the dollar will maintain its role in excelling as well.”

(Participated in the reports of Ann Travel; edited by Richard Chang)