Minneapolis Fed Pres. Kashkari is speaking (2023 voting member). Once a dove is now more of a hawk says:
- seeing little evidence of a labor market softening
- surging mortgage costs having profound impact on housing sector
- still working hard to achieve soft landing
- some data points to slower consumer spending
- mixed signals make it hard to get firm read on economy
- it is possible headline inflation has peaked
- does not see any evidence that core inflation has peaked
- committed to get inflation back down to 2%
- open to discussing inflation target level once price pressures back to 2%
- some evidence pointed to improving supply chains
- wages are trying to catch up to inflation not drive inflation
- risk of under shooting on rate hikes bigger than overdoing it
- takes a year or 2 for rate hikes to work through economy
- best guess is that the Fed can cause on rate hikes sometime next year
- fairly confident stagflation won't occur
- Does not think, US economy was in recession in first 6 months of the year
- On the margin, lower government spending would help inflation.
Late yesterday Kashkari said:
Minneapolis Fed Pres. Kashkari
