Federal Reserve Bank of Minneapolis President Neel Kashkari spoke with US media, the "Face the Nation" TV show. Signalling a pause at the December meeting is not off the table with these comments on inflation progress.

  • The economy has remained remarkably strong, not all the way home on inflation
  • The Fed wants to have confidence inflation will go all the way back to 2%; need to see more evidence before deciding on another cut.
  • If businesses lose employees due to deportations, it could disrupt them.
  • It will be between the business community and Congress how to adjust to deportations; there is still uncertainty around what the policy will be.
  • The Fed will have to wait and see what is decided on immigration.
  • At some point, federal debt and deficits will have to be addressed.
  • A one-time tariff would increase prices of goods but would not create persistent inflation unless other countries respond.
  • Businesses and labor are expressing cautious optimism about the economy.
  • Not concerned about political influence on the Fed; officials are focused on mandated goals.
Neel Kashkari