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Kashkari: Not A Lot Of Evidence The Economy Is Weakening

FED

Minneapolis Fed’s Kashkari (’23 voter) maintains hawkish leaning commentary in a Bloomerg TV interview, fleshing out similar remarks seen in appearances late yesterday. The below are a summary of headlines from Bloomberg:

  • Have to let the inflation and jobs data guide us. Economy will tell us how much needed on rates, and not seeing a lot of evidence the economy is weakening.
  • If inflation ticks back up, Fed’s job not yet done - Fed would do more on rates if needed.
  • No discussion in FOMC about interest rate cuts.
  • The US has structurally underbuilt housing units.
  • The dollar has been “quite strong”.
  • Term premium is economists’ version of dark matter.

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