Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said Sunday that mass deportations of undocumented immigrants working in the U.S. could disrupt the labor supply for some companies, but what impact it would have on inflation and the broader economy. said it was unclear.
Kashkari appeared on CBS' “Face the Nation” and outlined his views on the impact of President-elect Trump's campaign promise to deport illegal immigrants.
“Just assuming people are working on farms or working in factories, if those businesses lose employees, there will probably be some disruption,” Kashkari said.
“The implications are not entirely clear to me,” he explained. “Ultimately, it will be up to the business community, Congress and the executive branch to decide how to coordinate.”
His comments follow wall street journal President Trump's plan to carry out the largest mass deportation in U.S. history could cost $88 billion a year, or $968 billion over 10 years, according to a liberal immigration group known as the American Immigration Council. was reported on Friday.
President Trump told NBC News last week that his immigration plan was “not about price” and that “when people are killing and being killed and drug lords are destroying a country, a country doesn't have a choice.” . And now they're going back to those countries because they don't want to stay here. ”
Scott Bessent, CEO of Key Square Capital Management, is a key advisor on Trump's economic policy and is seen as a potential Treasury secretary candidate, but he was interviewed on Fox Business Network's “Sunday Morning.” Futures echoed those comments, saying maintaining the status quo would be more costly than Trump's mass deportations.
“Let's talk about the human cost. We have porous borders, fentanyl kills 100,000 people a year, and crime is on the rise. We need to address the fundamental fears of the American people. We have it. You can't put a price on it,” Bessent said.
Kashkari also touched on President Trump's plans to impose broad tariffs on imported goods in addition to tax cuts, explaining that the impact of these policies on inflation will depend on how they are implemented.
He said tariffs (taxes imposed on imported goods when they enter the country) may cause temporary price increases, but would not have a significant impact on long-term inflation.
However, Kashkari explained, “The question is whether there will be retaliatory measures.'' “If a country imposes tariffs and then responds and it escalates…what will be done?'' We'll have to keep an eye on it,” he said. And how other countries will react. For now, we're all just guessing. ”
