Fed Kashkari addresses tariffs uncertainty. USDJPY surges 0.5% above 150

7:03 pm 26 March 2025

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, commented today on the state of the U.S. economy, pointing to significant uncertainty related to trade tariffs. The U.S. dollar is gaining slightly, while the Japanese yen is under heavy pressure. Data from Japan showed no year-over-year growth in chain store sales for February, disappointing expectations for a 1% YoY increase.

Neel Kashkari, Federal Reserve Bank of Minneapolis

  • The impact of tariffs on interest rates more or less cancels out, so we should remain where we are.
  • I'm uncertain about the effect of tariffs.
  • I take the decline in confidence very seriously – the longer it lasts, the more meaningful it becomes.
  • The good news is that if trade uncertainty is resolved, confidence could be restored.
  • It’s conceivable that the decline in confidence could have a greater impact than the tariffs themselves.
  • This is the most significant shift in sentiment in the last decade, excluding the coronavirus pandemic.
  • A large part of this change stems from tariff-related uncertainty.
  • Over the next year or two, we should be in a position to lower interest rates further.
  • After the introduction of tariffs in 2018, we observed less reshoring of manufacturing to the U.S. than to other countries.
  • Compared to other nations, the U.S. is relatively insulated from trade dynamics.
  • Policy uncertainty is making the Fed’s job more difficult. The labor market remains strong – the biggest challenge is to finish the job.

Source: xStation5

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.