Fed's Kashkari: Backdrop of high inflation risks de-anchoring inflation expectation ...Middle East

Too soon to judge path of interest ratesLogical that tariffs are a one-off rise in prices but backdrop of high inflation runs the risk of unanchoring inflation expectationsCan't allow inflation expectations to get unanchoredSo far long-run inflation expectations haven't moved muchTariffs are somewhat inflationary and also slow growthIndependent monetary policy leads to better outcomes

There isn't anything new here but commentary continues to run counter to the 65% chance of a June cut that's priced in.

This article was written by Adam Button at www.forexlive.com.

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