As the election approaches, there is concerns about the deficit.
Fed's Kashkari is saying that
- Rising budget deficit would on the margin mean interest rates would be higher.
How all the dust settles is still up in the air as much may also depend on the split in the House and the Senate. Nevertheless, deficits remain a big concern, and making campaign promises are typically focused on the giveaways versus takeaways (in some form or fashion.
