Minneapolis Federal Reserve Bank Comments on Trade Policy

(Reuters) – Minneapolis Federal Reserve Bank President Neel Kashkari expressed concerns on Thursday about extreme uncertainty surrounding U.S. trade policy, stating it makes him “nervous” about potential large-scale layoffs. So far, he has only heard of businesses beginning to prepare for this possibility if uncertainty persists.

Kashkari emphasized that the most optimistic scenario for the U.S. economy this year would be a resolution to trade disputes with major trading partners. Such a resolution could alleviate significant uncertainty affecting both large and small businesses and individuals across the country. He noted that widespread nervousness could lead to a decline in economic confidence, ultimately harming economic performance.

Kashkari shared these thoughts during a speech at the University of Minnesota.