Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari noted on Wednesday that increased market volatility at the hands of constantly-waffling US trade policy will continue to make it harder, not easier, for the Fed to engage in rate adjustments, especially as still-existing tariffs continue to weigh on job creation and elevate inflation potential at the same time.

Key highlights

Dramatic change this afternoon.

Foresees reduced inflation impact if tariff pause continues.

Uncertainty may lead to economic decline.

Tariffs can lead to inflation, we'll need to monitor.
increasing
The bar for cutting rates remains high.

Already hearing firms are reducing their recruitment.

Tariffs can decrease job market while increasing inflation.

Federal Reserve prefers not to intervene in markets.

Source: Fxstreet