MNI BRIEF: Fed's Kashkari: 1-2 Years Before Inflation Hits 2%
Minneapolis Federal Reserve President Neel Kashkari said Thursday it will take another year or two before U.S. inflation settles back at the 2% target and the strength of America's economy is behind a divergence with other central banks looking to ease monetary policy.
He attributed stubborn inflation to the unique nature of the current cycle and said the economy has been throwing "curveballs" in recent years. The good news is there is still hope for a soft landing, he said during an armchair talk at the Michigan Bankers Association Convention. (See: MNI INTERVIEW: Fed To Cut Twice In '24, Start Sept - Sheets)
Divergence between the Fed and other central banks moving to ease policy is related to a "remarkably resilient" U.S. economy, he said. When the Fed raised rates last year for example, “I thought we were slamming the brakes with two feet,” he said.