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MNI BRIEF: Kashkari Sees Inflation Easing, Labor Supply Pickup

WASHINGTON (MNI)

Minneapolis Federal Reserve President Neel Kashkari said Friday inflation pressures will wane in coming months as the labor supply is boosted with working parents sending their children back to school and enhanced jobless benefits expiring.

Part of the inflation gains are also linked to base effects and supply shortages that appear transitory, Kashkari said during an online seminar. The Fed is keeping policy stimulus in place in part because there are perhaps 10 million people sidelined from their jobs. "We are in the beginning of what is hopefully a very strong recovery," Kashkari said, but adding "we are still in a deep hole."

MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
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