Minneapolis Federal Reserve President Neel Kashkari spoke on Sunday, US time, with US media, CBS' "Face the Nation".
- We need to see more evidence to convince US inflation is heading to 2%
- US economy is stronger than in other countries that are cutting rates
- Job market has performed better than expected
- May be more cooling in labor market yet to come, hope it will be modest
- Reasonable that rate cut could come in December
- We are in a very good position to take our time, get more data, before making a decision on rate
- Median projection is for one cut, that's likely to be toward end of the year
- We are in a high pressure economy in some dimensions, but some signs it's cooling
- Net effect of immigration in long-run on inflation is hard to judge
- Best thing Fed can do for housing is to get inflation down
Kashkari flipped to more hawkish than his colleagues much earlier than they did. Given the developments seen in US inflation this year he was correct to do so. He is dialling back that hawkishness a touch but he has clearly not leaped onto any September rate cut bandwagon.
Fed's Kashkari
