Neel Kashkari on Tariff Resolutions: Key to Easing Recession Fears
Importance of Tariff Resolutions
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, asserted that a fast resolution between the Trump administration and countries over tariffs will help ease recession fears. Joining CBS News's “Face the Nation”, he discussed rising recession probabilities as tariffs affect economies.
Implications of Trade Uncertainty
Kashkari noted that JP Morgan's Jamie Dimon estimates a 50% chance of recession, while Goldman Sachs projects 45%. He stresses that quick resolutions are essential in reducing these risks. The faster resolutions occur, the more confidence can be restored in the market.
Challenges Ahead
Despite his optimistic outlook, Kashkari warned of the serious volatility in the current situation. The U.S. has entered a trade war as countries seek exemptions from tariffs. He cautioned that if businesses and consumers retreat from the market, it could lead to an economic downturn, regardless of tariff outcomes.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.