Minneapolis Federal Reserve Bank President States The Future of The Economy Is Uncertain

DETROIT LAKES, Minn. (KVRR) — The uncertainty of the future of the economy has many concerned on the impacts of what might be next for many businesses and people in the country.

“The biggest concern is uncertainty about tariffs. We obviously export a lot to countries all around the world that would be affected if there are tariffs and other countries put onto us. And we also buy products from all around the world and if tariffs increase the price for those,” said Neel Kashkari, Minneapolis Federal Reserve Bank President.

A survey sent out to attendees showcased concerns of tariffs on the economy. But Neel Kashkari said that while tariffs may affect the economy we don’t know what it may look like.

“If it’s across the whole economy, is it truly a trade war? That everything we buy from China or everything that we export all around the world is subject to higher tariffs then that could be very damaging to the economy. But that’s why there’s so much uncertainty, we don’t know how widespread the tariffs are going to be, how high they’re going to be and how long they are going to be sustained,” said Kashkari.

Current tariffs include 25% on imported steel and aluminum, and 20% tariffs on all products from China.
Other concerns were on many entering the job force with an average of over $37,000 in student loan debt and many not being able to afford housing.

“If wages go up because inflation is going up then you’re never catching up. But if wages are going up while inflation is held down then people can actually get ahead and afford more things for themselves and for their kids,” said Kashkari.

While Minnesota ranks at number two for the best economic opportunities, many are still hoping for wage improvements.

Kashkari plans to host a listening session with local business leaders and tour a tribal enterprise.