Federal Reserve Kashkari: It's too early to judge the impact of the new government on the economy and interest rates

Federal Reserve Kashkari stated that as the Federal Reserve makes progress in curbing inflation, the US economy remains very strong, but the Federal Reserve "has not finished its journey". Trump's promise to massively deport illegal immigrants has raised questions about what impact this might have on the US economy and labor market. Kashkari said that deporting immigrants could cause "damage" to some American businesses, and it is still unclear how the outflow of immigrant labor will affect inflation. It is too early to judge how potential policies from a new government and Congress will affect economic and interest rate trajectories. “There are many uncertainties about what actual policy will be, what Congress will pass, and how it will be implemented. Before we analyze what this means for our economy, we must wait to see what actions other parts of government decide to take."