Fed’s Kashkari: We won’t declare mission accomplished on inflation

• We won’t declare mission accomplished on inflation.
• The labour market is strong, want to keep it that way.
• Fed policy is still in a net tight position.
• An uptick in unemployment is a bigger risk than inflation.
• There is lots of ambiguity around what the neutral rate level is.
• I expect smaller steps going forward for the Fed.
• A 50 bps rate cut was a meaningful step to get the process moving.
• The FOMC meeting had active deliberations over Fed rate cut.
• A 25 or 50 bps rate cut, both would have been reasonable.
• The election is not a factor in Fed rate decision.
• There’s lots of uncertainty abour where the Fed will cut to.
• I would love to get back to 3.5% unemployment rate.
• The labour market has not been driving inflation.
• Job market a lousy forecaster of inflation.
• Penciled in 50 basis points more cuts in 2024.

This article was written by Giuseppe Dellamotta at www.forexlive.com.