MNI BRIEF: Kashkari Says Inflation Should Ease With Pandemic

Minneapolis Federal Reserve President Neel Kashkari said Tuesday inflation pressures are likely to subside as the pandemic is brought under control, rather than a scenario of more permanent rapid price gains.

While inflation has been surprising in recent months, he pointed to slack, including payrolls that are perhaps six million below where they might be absent the pandemic. “It’s been uneven and there are still some big gaps,” he said of the economic rebound during an online seminar. Earlier he posted an online essay saying his last dot plot submission called for two rate increases this year, rather than September when he told MNI he was the lone person calling for no move until 2024.