MNI BRIEF: Fed's Kashkari Hopeful About A Soft Landing

Minneapolis Federal Reserve President Neel Kashkari said Tuesday he remains hopeful the U.S. economy can achieve a soft landing, though he said even tighter policy may be needed if inflation remains stubborn.

“Things are looking hopeful” for a soft landing, which he defined as avoiding a major recession during a town hall talk. Economic data still shows mixed signals and a recent jump in 10-year Treasury yields is also hard to interpret amid questions about the pace of economic growth, fiscal policy, and the Fed's inflation fight, he said. (See: MNI INTERVIEW: Fed Done Hiking, Will Cut As Soon As Q1-Tilley)

While it’s possible higher long-term bond yields will do some of the Fed’s work for it, Kashkari said he wants more data before feeling comfortable that policymakers have done enough.