Fed's Kashkari said the Fed is unlikely to cut rates in the face of tariffs, even if the economy starts to deteriorate, given their impact on inflation. Kashkari called Trump's tariffs "much higher and more widespread than expected," and he expects them to reduce investment and economic growth and push up inflation "at least in the near term." "Because of the tariffs, the hurdles to moving interest rates one way or the other have increased," Kashkari wrote. "Given the critical importance of keeping longer-term inflation expectations anchored, and the potential for tariffs to boost near-term inflation, the bar for cutting rates is higher even in the face of a weak economy and potentially rising unemployment." He pointed to recent measures of inflation expectations that have begun to rise, as well as the U.S.'s years of high inflation experience, as reasons the Fed may not be able to ignore any tariff-driven price shocks. "Given the high inflation we have experienced in recent years, and the risk that longer-term inflation expectations could get out of hand, I believe our first priority must be to keep longer-term inflation expectations anchored," he said.