Minneapolis Federal Reserve Bank President Neil Kashkari has expressed confidence that the markets are orderly as investors categorize through President Donald Trump’s changing trade policy, saying central banks must continue to focus on securing inflation expectations.
Kashkari said US trade and fiscal policy will determine where those numbers will go after a week spike in Treasury yields for 10 years.
“At the Fed, our job is to keep inflation in control so that the rates aren’t any better,” he told CBS on Sunday. Face the country.
Kashkari was one of the Fed policymakers last week that he was prepared to stabilize the Fed’s policy rates to minimize the risk that workers’ tariffs could cause a sustained increase in inflation.
In public comments and interviews, many officials have sent clear signals excluding interest rate cuts, which serve as insurance contracts against tariff-induced economic slowdowns.
“I think investors in the US and around the world are trying to decide what the new normal is in America,” the Fed “has zero capacity to influence that destination,” Kashkari told CBS.
“What we can do is maintain our expectations of inflation and pinpoint and manage some of the ups and downs of that journey,” he said.
When asked if the market was orderly, Kashkari replied, “They are,” adding that market participants would “know where this will settle.”
“But the market is working and there’s trading going on so we expect it to continue,” he said.
This story was originally featured on Fortune.com.
