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.
This article was written by Eamonn Sheridan at www.forexlive.com.
