Federal Reserve Bank of Minneapolis President Neel Kashkari said on Wednesday that while significant progress has been made in bringing inflation down, more work remains to reach the Fed's 2% target. The official emphasised that the biggest challenge for policymakers is to finish the job.
Kashkari noted that policy uncertainty, particularly around tariffs, is complicating economic analysis. He acknowledged that he takes very seriously the recent hit to confidence, warning that the longer it persists, the more significant its effects could be. He attributed much of the recent shift in sentiment to concerns over tariffs but highlighted that resolving trade uncertainties could help restore confidence.
Looking ahead, the policymaker expressed optimism that the Fed should be able to reduce interest rates further in the next year or two.