The President of the Federal Reserve Bank of Minneapolis Nile Kashkari has confident that the markets will remain orderly because investors are going through a change of President Donald Trump’s trade policy and said the Central Bank should remain concentrated on maintaining inflation expectations.
Speaking after a week that brought a sharp growth in the 10-year treasurer, Kashkar said the US trade and fiscal policy would determine where the number goes.
“The Fed is our task – to maintain inflation under control so that the rate is not even higher,” he said on Sunday at CBS’s Face to the nation.
Kashkar was one of the Fed politicians who signaled last week that they were ready to constantly pursue the Fed’s political rate to minimize the risk that Trump’s tariffs cause constant inflation growth, even when the job market softens further.
In public comments and interviews, a number of officials sent a clear signal that they exclude a decrease in the interest rate, which will act as an insurance policy against any tariff economic slowdown.
“I think investors in the US and worldwide try to determine what new in America,” and the Fed has “zero ability to influence this place,” Kashkar CBS said.
“Everything we can do is keep inflation expectations and manage some ups and falls on this journey,” he said.
Asked if the markets are ordered, Kashkar replied: “They are”, adding that the volatility should be expected when the market participants “understand where it is settled.”
“But the markets work, transactions are happening, and so I suppose it will continue,” he said.
Originally this story was presented on Fortune.com
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2025-04-13 16:41:00
Tony Czuczka, Bloomberg
