Federal Reserve Kashkari: Tariffs Could Lead to Uncontrolled Inflation Expectations, No More Trade Deficit Means the U.S. Is No Longer the Best Place to Invest
According to Jinshi, Federal Reserve's Kashkari (non-voting member) mentioned the economic outlook, stating that tariffs have partly caused inflation and may also lead to slower economic growth. Logically, tariffs lead to a one-time price increase, but he is concerned that, against the backdrop of already high inflation, tariffs could cause inflation expectations to become unmanageable. Kashkari said the Fed's job is to ensure tariffs do not lead to long-term inflation, and it is too early to assess what is happening right now. He also mentioned that the absence of a trade deficit means investors will have to conclude that the U.S. is no longer the best investment destination, and fluctuations in bond yields and the dollar indicate that global investors have reassessed their investment directions. Kashkari hopes that the U.S. maintains its dominant position in the global economy and the status of the dollar as the world's reserve currency.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Swiss Franc: Range trading persists against US Dollar – UOB
Exclusive Report – According to two sources, the first liquefied natural gas production line of Qatar Energy ’s NFE project is ready and about to start operation.
According to two sources familiar with the matter, the first liquefied natural gas (LNG) production line under the "North Field East" expansion project by QatarEnergy is now ready and about to start operation, with the first batch of natural gas expected to be produced in November. This could provide Qatar with a way to restore some of the output lost due to attacks from Iran.
BlackRock’s Remarkable AI Scenario: “Bitcoin (BTC) Takes the Lead!”
BUZZ - Citi upgrades XPO rating to "Buy" due to increased market share and strong pricing power
October 7 - Citigroup has upgraded logistics company XPO (XPO.N) from “Neutral” to “Buy,” and raised its target price to $224, indicating an upside potential of about 22% from the previous trading day’s closing price. The brokerage stated that the upgrade was made after the stock declined from the $230 range to its current level of $183 per share. It also added that the recent broad pullback in the transportation sector has created a "more favorable risk-reward setup" for the third-quarter earnings season. Citigroup noted, "Notably, XPO has been particularly optimistic about its Q3 earnings, expecting an opportunity to gain market share and maintain pricing power." Among 26 brokerages, 19 rate the stock "Buy" or above, 6 rate it "Hold," and 1 rates it "Sell"; the median target price is $238 according to data compiled by the London Stock Exchange Group (LSEG). As of yesterday’s close, the stock had risen 35% year-to-date.
Crypto prices
More
