Minneapolis Federal Reserve President Neel Kashkari stated on CBS’s “Face the Nation” that the potential for a recession stemming from trade tensions is contingent upon the swift resolution of trade uncertainties with key international partners. Kashkari emphasized the significant impact of these uncertainties on economic confidence, drawing a parallel to the onset of the COVID-19 pandemic in March 2020. He noted the substantial effects of tariffs on trade flows across various sectors, citing concerns expressed by his contacts. Kashkari affirmed the Federal Reserve’s commitment to maintaining price stability. He further observed that global investors are currently assessing the evolving economic landscape in the United States. Despite these uncertainties, Kashkari expressed confidence in the continued functionality of markets and ongoing trade activity. As of the time of reporting, the US Dollar Index had increased by 0.11% to 99.89.
