Minneapolis FED President Neel Kashkari shared his views on various aspects of the US economy in a recent statement. Kashkari said the FED is focusing on underlying demand in the economy to control inflation.
Kashkari expressed surprise at the resistance of American consumers and said, “Americans are spending more than I expected.” Kashkari also noted the robustness of the housing market, which exceeded his expectations.
The FED's current policy stance has also been a matter of debate. “The biggest question mark right now is how restrictive the policy is now,” Kashkari asked, suggesting that it may be necessary to maintain the current stance for a while to determine the future direction of inflation.
Kashkari also touched on the issue of US government debt. With rising debt, higher borrowing costs may be needed in the near term to meet the 2% inflation target, he said.
Regarding cryptocurrencies, Kashkari reiterated his skepticism about Bitcoin. “Bitcoin has very few practical uses, it is not an investment instrument or currency,” he said. He also reiterated his doubts about the value of Central Bank Digital Currencies (CBDCs).
*This is not investment advice.