Minneapolis Fed President Neel Kashkari said there are no signs of rising long-term inflation expectations.

While recent CPI data has been positive, tariffs have contributed to rising inflation and held back economic activity. The economic outlook depends largely on the progress and pace of tariff negotiations. If inflation persists, rate cuts could be delayed.

Kashkari stressed that any intervention by the Fed or Treasury should be done cautiously and only when absolutely necessary, to avoid undermining the Fed’s commitment to controlling inflation. Liquidity tools remain available if needed.

In short, we will continue to watch and do nothing.