Minneapolis Federal Reserve President Neel Kashkari said uncertainty surrounding tariffs could keep inflation elevated while also weighing on economic growth. His comments reflect growing concern inside the central bank that trade policy shifts can complicate efforts to stabilize prices without hurting the broader economy.

Kashkari said the Fed is watching incoming data closely as officials assess how tariff-related costs may pass through to consumers and businesses. He did not signal an immediate policy change, but his remarks suggest the central bank remains alert to the possibility that trade uncertainty could make its job harder.

The Fed has been trying to balance progress on inflation with signs of cooling growth. If tariffs raise input costs or disrupt supply chains, businesses may face higher expenses, while households could see fewer gains in purchasing power.

Markets continue to parse Fed commentary for clues about the path ahead, especially as policymakers weigh whether fresh trade pressures could delay rate cuts or keep borrowing costs elevated for longer than expected.

Neel kashkari

Kashkari warns tariff uncertainty could raise inflation and slow growth