Fed's Kashkari: If inflation persists, it will take longer to reach the level needed to lower interest rates

Mars Finance News, on April 11, the Federal Reserve's Kashkari stated: There is no evidence of long-term inflation expectations rising. Investors may believe that if the trade deficit decreases, the United States' investment attractiveness will weaken. The claim of changing investor preferences may be credible. The weakness of the US dollar indicates that investor preferences are changing. I believe we are still far from the market conditions seen during the COVID-19 pandemic, and ultimately have the ability to manage some of these transitional processes, which can smooth out some imbalances. We cannot determine where yields will ultimately stabilize, and can only smooth out these changes. The CPI data shows many positive signals, and the impact of tariffs indicates that inflation will rise again, with tariffs driving up inflation and reducing economic activity. The economic outlook largely depends on the progress and speed of tariff negotiations. If inflation issues persist, it may take longer to reach a comfortable level for rate cuts. I believe interventions by the Federal Reserve or the Treasury should only be made in unavoidable circumstances and should cautiously avoid measures that might suggest a weakening commitment to reducing inflation. The Federal Reserve has tools to provide more liquidity. (Jinshi)