• 34ºc, Sunny

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

The U.S. economy remains very strong as the Federal Reserve makes progress in taming inflation, but the central bank is "not finished", said Kashkari of the Federal Reserve. Trump's promise to deport illegal immigrants on a large scale has raised questions about what impact the U.S. economy and labor market could have. Kashkari said deporting immigrants could be "disruptive" to some U.S. businesses, while it is unclear how the outflow of immigrant labor would affect inflation, it is too early to tell how potential policies from the new administration and Congress will affect the economy and the trajectory of interest rates. "There is a lot of uncertainty about what the actual policy will be, what Congress will pass and how it will be implemented. We have to wait and see what the rest of the government decides to do before we analyse what this means for the economy. "