Federal Reserve Kashkari: If inflation persists, it will take longer to reach the level required to lower interest rates

BlockBeats News: On April 11th, Federal Reserve's Kashkari stated in a speech that there is no evidence of an increase in long-term inflation expectations. Investors may believe that if the trade deficit decreases, the attractiveness of investment in the United States will weaken. The claim of a shift in investor preferences may be credible. The weakening of the US dollar indicates a shift in investor preferences. I think we still have a long way to go from the market situation we saw during the COVID-19 epidemic. Finally, we can manage some of the transitional processes and smooth some of the imbalances. We cannot determine where the yield will ultimately stabilize, we can only smooth out this change. The CPI data shows many positive signals, with the impact of tariffs indicating that inflation will rise again. Tariffs have pushed up inflation and reduced economic activity. The economic outlook largely depends on the progress and speed of tariff negotiations. If the inflation problem continues to drag on, it may take longer to reach the comfortable level required to lower interest rates. I believe that the intervention of the Federal Reserve or the Treasury should only be carried out in situations of necessity, and measures that may indicate a weakening of the Federal Reserve's commitment to reducing inflation should be taken with caution. The Federal Reserve has tools to provide more liquidity. (Golden Ten)