Some final remarks from Minneapolis Fed Pres. Kashkari:
- right now by most measures the labor market is very strong
- if job market softens a little bit to bring down inflation , that's not much of a trade-off
- a recession would most hurt low income workers
- but if we don't get inflation under control, low income workers are also the ones hurt the most
- we have to do our best to achieve our dual mandate
- I'm hoping we get some help along the way so Fed doesn't have to do all the work on the breaking down inflation
- I am still optimistic labor force participation will rise further, but priority is bringing down inflation
- I expect home price growth to at least start cooling off
- I don't really buy into the "great resignation" theory
- Lots of people are switching jobs
- My business contacts are telling me they need a more robust supply chain to reduce vulnerabilities
- We have to avoid a wage price spiral taking place
- We need to get rates to at least neutral and moderately above by the end of the year or early next
- How much we need to go beyond neutral depends on incoming data
- We are going to walk the walk on our forward guidance
Kashkari is a alternate member on the FOMC this year. He will be a full voting member next year and tends to be 1 of the more dovish Fed President's.