Minneapolis Federal Reserve President Neel Kashkari stated that the threshold for reducing interest rates is now higher to maintain stable inflation expectations despite challenges such as tariffs. Kashkari emphasized that the impact of tariffs has made it more difficult to adjust interest rates. This aligns with other Fed officials' cautious stance regarding potential rate cuts in response to the uncertainties stemming from trade policies. Federal Reserve Bank of San Francisco President Mary Daly also remarked on taking a patient approach towards rate adjustments to evaluate the effects of trade policy changes. Fed Chair Jerome Powell echoed a similar sentiment by emphasizing the need to evaluate the appropriate monetary policy path in light of existing uncertainties. Pressure from market observers and President Trump has led to calls for potential interest rate cuts, with traders showing an increased expectation of multiple cuts this year. Kashkari highlighted the importance of anchoring long-term inflation expectations, which he views as crucial for sustainable economic growth and competitiveness. He noted the rising risks of inflation expectations becoming unanchored due to uncertainties surrounding international responses to tariffs and the potential escalation of trade tensions. The decrease in demand for capital investment by businesses suggests that current interest rates may already be restrictive enough, reducing the immediate need for rate hikes to stabilize long-term inflation expectations.