Minneapolis Fed Pres. Kashkari: housing market is proving more resilient to tighter policy

Minneapolis Fed Pres. Kashkari (nonvoting member) is speaking and says:

• Housing market is proving more resilient to tight monetary policy than it has been in the past
• Possible that housing market resilience means the neutral rate has been pushed higher at least in the short term
• inflation progress seen in latter half of 2023 appears to have stalled,
• The question is whether disinflation is still underway or just taking longer
• The recent slow GDP due to inventories and net exports, underlying demand remains strong.
• The yield curve inversion suggests that policy is indeed tight.
• He modestly raised his neutral rate to 2 1/2% from 2%.
• It is hard to explain the robustness in the economy

Kashkari has been more of a hawk of late.

This article was written by Greg Michalowski at www.forexlive.com.