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Fed should stay put for extended period amid policy uncertainty, Kashkari says

Minneapolis Federal Reserve Bank President Neel Kashkari on Wednesday said he's uncertain about the effect of President Donald Trump's tariffs on the U.S. economy, with the possibility that they could push up prices arguing for higher interest rates, and the chance that they could slow economic growth calling for reducing borrowing costs. Together those forces are "kind of a wash," he told the Detroit Lakes Chamber Economic Summit, meaning that the Fed should "just sit where we are for an extended period of time until we get clarity." Kashkari's comments reflect what appears to be a widely held view at the Fed that there is no rush to cut rates, as Fed Chair Jerome Powell also signaled last week after the central bank held short-term interest rates in the 4.25%-4.5% range.

US oil, gas activity rose in first quarter, but energy execs wary of tariffs, Dallas Fed says

U.S. oil and gas activity increased slightly in the first quarter, but energy company executives were pessimistic about the sector's outlook, wary of new trade policies from President Donald Trump's administration, a Dallas Fed survey showed on Wednesday. Trump has promised to unleash U.S. energy dominance, declaring a national energy emergency on his first day in office. Trump imposed tariffs on steel and aluminum on March 12 and more tariffs could be coming on April 2.

NY Fed details likely looming rise in troubled student loan borrowing

NEW YORK (Reuters) -The end of various pandemic-era student loan support programs likely portends a rise in credit issues for borrowers, although it will take time to understand the full extent of the problem, New York Federal Reserve researchers said on Wednesday. “We expect to see more than nine million student loan borrowers face substantial declines in credit standing over the first quarter of 2025,” the regional Fed bank said in a blog posting. New York Fed economists acknowledged there’s lots of uncertainty over how this increased trouble in the student lending sector will play out, but noted that those with higher levels of credit scores appear to have the most room to lose.

Morning Bid: Temporary consumer gloom or economic doom?

The darkest U.S. consumer confidence outlook in 12 years is sobering, to say the least, but the big question for investors is whether consumers actually rein in spending to match their apparent gloom. Today, I'll discuss this, give you an update on what else is happening in markets and then take a look at how much of next week's potential U.S. tariff sweep is being priced into currency markets. * The European Union's trade commissioner Maros Sefcovic met with U.S. President Donald Trump's top trade officials on Tuesday to try to avoid steep U.S. tariffs on EU goods next week.