Reply To: Central Bank Watch – Deluge of BOE, ECB and Fed Speakers including Powell and Bernanke


Minneapolis Fed Pres. Kashkari speaking

Inflation has come down but it is still above target
Wage growth has softened somewhat
Bank turmoil can be a source of slowing for the economy
Wage growth deceleration is mixed depending on income
Housing is a key issue for hiring new workers from other regions
Feds 2% inflation target is permanent for the near future.
It’s conceivable that once we get inflation down to 2% we could have a conversation about changing the target
Fed is united in commitment to getting inflation to 2%
Kashkari is a speaking at a Marquette CEO town Hall event
I am not convinced we are at Max employment
Inflation is too high
If markets are right and that inflation will fall quickly, one would imagine rates could normalize
If high inflation is a more embedded, rates will need to stay high for longer
Data is driving my policy expectations
I am now on the more hawkish and of Fed policy spectrum
Not seeing evidence of a crash in consumer spending or slower in services side of economy
Once this period of high inflation ends, we will be back in a low inflation, low rate environment
Inflation is coming down, but it’s pretty darn persistent.
That means we will have to keep at it for an extended period
Inverted yield curve put real pressure on banks