Kashkari Warns Trump Tariffs May Spark Inflation via Trade Retaliation

Minneapolis Federal Reserve President Neel Kashkari warned that President-elect Donald Trump's proposed tariffs could exacerbate long-term inflation if they lead to retaliatory trade measures from global partners. While one-time tariffs may not impact inflation significantly, an escalating trade war could create uncertainty and inflationary pressures. Trump's plan includes universal tariffs on all imports, with a 60% rate on Chinese goods, raising concerns among economists and industry leaders. The Fed, which recently cut interest rates, remains focused on economic health, maintaining its political independence despite external pressures.