The Federal Reserve (FED) Kashkari: If inflation persists, it will take longer to reach the level needed to drop the Intrerest Rate.

On April 11, The Federal Reserve (FED) Kashkari stated that there is no evidence yet of a long-term rise in inflation expectations. Investors may believe that if the trade deficit decreases, the attractiveness of U.S. investments will weaken. The notion of a shift in investor preference might be credible. The weakening of the dollar indicates that investor preferences are changing. I think we have a long way to go before we see the market conditions that prevailed during the COVID-19 pandemic; eventually, we will have the ability to manage some of these transitional processes to smooth out some of the imbalances. We cannot determine where yields will ultimately stabilize; we can only smooth this change. CPI data shows many positive signals, and the impact of tariffs indicates that inflation will rise again; tariffs have pushed up inflation and reduced economic activity. The economic outlook largely depends on the progress of tariff negotiations and the pace of that progress. If the inflation issue continues to drag on, it may take longer to reach the comfortable levels needed to lower interest rates. I believe that interventions by the Federal Reserve (FED) or the Treasury should only occur in cases of necessity and should be cautiously taken, as they may indicate a weakening commitment by the Federal Reserve (FED) to reduce inflation. The Federal Reserve (FED) has tools to provide more liquidity. (Jin10 )