Fed’s Kashkari: I feel good about progress on inflation but it’s still too high

Kashkari is participating in a moderated Q&A followed by an audience Q&A. I’ll update the headlines as they roll in.

  • We have been surprised by the economy’s resilience
  • Question is whether we have done enough or need to do more
  • On average the banking system is stable and well capitalized
  • The March banking event was a wake-up call for banks
  • Housing market resilient has been one of the biggest surprises
  • We underbuilt in housing and there’s a structural deficit
  • The last couple inflation readings have been positive
  • I want to see convincing evidence that inflation is on its way to 2%
  • We need to avoid 1970s style outcome where we stop hiking too soon
  • We’re a long way from cutting rates because core is still close to 4%
  • At some point next year the Fed may need to lower rates
  • Economy keeps exceeding expectations
  • I’m not seeing any signs of a crisis in China, it’s something we’re watching

Kashkari went on a bit of a rant about land use and zoning as a problem that’s holding back home construction and making homes unaffordable.

This article was written by Adam Button at www.forexlive.com. Source