The Globe and Mail reports in its Monday, Nov. 11, edition that widespread deportation of foreign-born workers in the U.S. might disrupt businesses, but its impact on inflation and the economy would vary, said Minneapolis Federal Reserve president Neel Kashkari on CBS's Face the Nation. A Reuters dispatch to The Globe reports that Mr. Kashkari discussed the potential economic effects of president-elect Donald Trump's promise to deport undocumented immigrants. Mr. Kashkari said, "If you just assume people are working -- either working in farms or working in factories -- and those businesses now lose employees, that would probably cause some disruption." He added: "The implications are not entirely clear to me. Ultimately it is going to be between the business community and Congress and the executive branch to figure out how they would adjust." Mr. Trump's election may bring new uncertainties for the U.S. Federal Reserve.
Mr. Kashkari said that while the current expectation is for another quarter-point cut at the Fed's December meeting, "we need to see what the data actually look like" before deciding.
"We want to have confidence that inflation is going to go all the way down to our 2-per-cent target."
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