Head of the Federal Reserve bank in Minneapolis Neel Kashkari
- says most of high inflation we are seeing are in a few sectors
- as economy returns more to normal, price increases will level off
- he's not seeing evidence yet of high inflation readings driving up inflation expectations
- optimistic we should have a strong labor market in fall
- the wrinkle is delta; could make people concerned about reentering labor market
- we are still in a deep hole with 7-9 mln Americans out of work
- balance of power has swung in direction of labor; that won't be permanent, will change as more reenter workforce
Kashkari is very much at the more dovish end of the FOMC spectrum. These comments are not indicating he is swinging towards a more hawkish outlook.
More:
- Says have not made 'substantial further progress'
- we are about one third out of the employment hole since December
- IF get a strong Labor market as expected in the Fall then would meet 'substantial further progress' bar
I bolded that bit - that is what K is watching.