Kashkari says inflation could be extended "the longer there's back and forth" in Canada tariff fight
Federal Reserve official Neel Kashkari warned that ongoing trade tensions and tariffs between the U.S. and Canada could prolong inflation. The conflict involves retaliatory tariffs on various goods following a breakdown in trade negotiations.
Why it matters
Escalating trade disputes between major economic partners can have significant impacts on consumer prices and global supply chain stability.
Washington — Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said Sunday that the tariff fight with Canada could extend U.S. inflation, should the tense trade dynamic that came to a head in recent days between the historically allied countries continue. "The longer there's back and forth on the trade front, just like the longer there's back and forth in the conflict of Iran, the imprint and inflation end up being extended and delayed," Kashkari said on "Face the Nation with Margaret Brennan."The U.S. on Saturday began imposing 50% tariffs on Canadian products after negotiators failed to reach an agreement to resolve the standoff over trade between the key partner countries. U.S. Trade Representative Jamieson Greer said Saturday that no new planned talks with the Canadians were on the table.
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