Federal Reserve Kashkari: The economy is slowing down, and the impact of tariffs on inflation is still unclear. It may still be appropriate to start adjusting policy interest rates. The Federal Reserve needs to deal with an economic slowdown, and two interest rate cuts this year still seem appropriate. If inflation rises due to tariffs, the Fed may pause or even raise interest rates without commenting on the President's personnel choices, but don't doubt the data from the Bureau of Labor Statistics. Ultimately, you cannot fake economic reality.