Minneapolis Federal Reserve Bank President Neel Kashkari

(Reuters) – Neel Kashkari, President of the Minneapolis Federal Reserve Bank, addressed President Donald Trump’s criticisms of Fed Chair Jerome Powell regarding interest rate cuts. He emphasized that the independence of the Fed’s monetary policy is crucial for achieving better economic outcomes.

During his talk at the U.S. Chamber of Commerce Global Summit in Washington, D.C., Kashkari remarked that it’s premature to determine the appropriate direction for interest rates.

He also observed that the recent increase in Treasury yields, coupled with a weakening dollar, indicates that some investors might be reevaluating their willingness to invest in the United States. He warned that a decline in capital flows could result in higher interest rates in the U.S.