Fed Kashkari cites trade policy uncertainty as a risk to jobs

Published 24/04/2025, 23:18
Fed Kashkari cites trade policy uncertainty as a risk to jobs

Investing.com -- Thursday brought forth a series of candid remarks from Neel Kashkari, President of the Minneapolis Federal Reserve Bank, expressing concern over the potential economic impact of prolonged trade policy uncertainty. Kashkari highlighted the lack of demonstrated utility for cryptocurrencies in advanced economies, despite their existence for over 15 years.

Kashkari pointed out that it is the role of Congress to implement regulations governing the cryptocurrency market. He underscored the positive outlook that could emerge from the resolution of trade frictions, which he believes would alleviate the current uncertainty faced by businesses and consumers alike.

Amid these uncertainties, Kashkari shared his worries that businesses might resort to layoffs, although he noted there has not been an uptick in layoffs so far. Some businesses, he mentioned, are beginning to scenario plan for potential layoffs should the uncertainty persist.

The frequency of policy announcements from Washington is creating challenges for policymakers and the public, according to Kashkari. Despite these challenges, he expressed confidence in the nation’s ability to navigate through the current economic climate.

Kashkari’s comments were made during an appearance at the University of Minnesota, where he elaborated on the potential risks to the economy if collective nervousness among businesses and consumers were to escalate.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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