Kashkari: FED Faces Dual Challenges of Inflation and Unemployment
According to a Bloomberg report, Neel Kashkari, the president of the Minneapolis Federal Reserve Bank, stated on April 22 that the central bank must avoid persistent inflation issues. He mentioned that the impact of tariffs is not yet clear, and it is too early to draw conclusions about interest rate trends. Kashkari believes that the independence of the central bank is key to the success of the U.S. economy.
He emphasized that he will closely monitor U.S. labor market dynamics and warned that the uncertainty surrounding tariffs could lead to an economic downturn. If not addressed properly, it could push the economy into recession. Kashkari indicated that the FED cannot simultaneously tackle rising inflation and unemployment.
According to data from Challenger, Gray & Christmas, Inc., the number of layoffs announced by U.S. employers as of March 2025 surged 205% year-on-year to 275,240, setting a record for the highest number for that period since 1989.
