Kashkari on CNBC:
- Not sure how many more cuts would be needed to get to neutral
- It's possible that cutting short term rates will not translate into lower long-term rates
- People are betting on the institutions of the country to maintain Fed independence
- Important underlying components of inflation including housing and non-housing services do seem to be coming down
- Powell achieved a tremendous consensus, which is a credit to him
- Politics did not enter the Fed's conversation this week
- Labor market is not bad but Fed needs to pay attention to it
This is fairly dovish and should add some confidence that two more cuts are coming this year.
