Fed's Kashkari: Too soon to know the effect of tariffs on inflation

Federal Reserve Bank of Minneapolis President Neel Kashkari said late Thursday that it's too soon to know the effect of tariffs on inflation. Kashkari added that it's challenging to read signals without core government data because of the federal shutdown.

Key quotes

Too soon to know the effect of tariffs on inflation.
Impact of tariffs taking longer to be felt than had guessed.
Expect services inflation to trend down, possible that goods inflation could spill over.
Job market is slowing down.
Its challenging to read signals without core government data because of the shut down.
Most folks say they are still concerned about inflation.
Fed prioritizing labor market over inflation control could lead to bad outcomes for workers.
Private credit bears watching; cautious about if it's suitable for a 401K.
Leaders on both sides of the aisle believe in an independent Fed.
Pleased to see Supreme Court in May said Fed was a unique institution.
US economy is far and away the strongest economy in the world.
Immigration is a tool for economic growth, should we choose to use it.
Housing affordability crisis can't be solved by interest rate cuts; need more housing supply.
More risk of labor market negative surprise than an uptick in inflation.
We are likely betting the economy is slowing more than it really is.
Take concerns about soy beans very seriously, but not something the Fed can do something about.
The longer the government shut down lasts, the less confident we are that we are reading the economy correctly.

Market reaction

At the time of writing, the US dollar Index (DXY) is trading around 98.27, down 0.40% on the day.