The Minneapolis Federal Reserve president said the escalating trade war has raised the bar for rate cuts. As tariffs on U.S. trading partners pile on, the Federal Reserve needs to focus on keeping inflation in check, Minneapolis Fed President Neel Kashkari said Wednesday.

The central bank’s “first priority must be keeping long-run inflation expectations anchored,” Kashkari says.

With inflation recently higher, the risk that inflation expectations could rise and lead to a persistent march up in prices has increased notably.