Oddbean

Fed official says the U.S. has the 'luxury' to play the waiting game with inflation thanks to the strong labor market ========== Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated that the U.S. has the 'luxury' to wait and see on rate cuts due to the strong labor market. The unemployment rate in the U.S. is 3.9%, and the job market remains healthy. Kashkari believes that the Fed should take its time to assess inflation and make the right decisions. Consumer sentiment has improved, and the overall economic outlook will influence the November elections. The housing market is also a significant factor in people's attitudes about the economy. Wall Street's expectations for rate cuts have decreased, and there is a possibility of a rate increase this year. Kashkari mentioned that the recent quantitative tightening hasn't affected consumers' ability to spend. The Fed wants to determine if inflation will go lower or if it will stabilize around 3%. Kashkari and others have suggested that a baseline level of inflation at 3% may be the new normal. The article also mentions other news unrelated to Kashkari's statements. #FederalReserve #NeelKashkari #Inflation #InterestRates #LaborMarket #Unemployment #Economy https://fortune.com/2024/05/28/inflation-waiting-game-interest-rates-labor-market-neel-kashkari-economy/