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Federal Reserve Kashkari: Tariffs will cause inflation expectations to get out of control, and no longer having a trade deficit means that the United States is no longer the best place to invest

Internet reports that when talking about the economic outlook, Federal Reserve Kashkari (non-voting committee) said that tariffs have caused inflation to a certain extent and may also lead to a slowdown in economic growth. Logically, tariffs would lead to a one-time price increase, but he feared that in a context of already high inflation, tariffs could cause inflation expectations to get out of control. Kashkari said the Fed's job is to ensure tariffs do not lead to long-term inflation, and it is too early to judge what is happening. He also said that no longer having a trade deficit means investors will have to conclude that the United States is no longer the best place to invest, and fluctuations in bond yields and the dollar suggest that global investors have reassessed the direction of investment. Kashkari hopes that the United States will maintain its dominant position in the global economy and maintain the dollar's status as a global reserve currency.

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