Fed’s Kashkari: CPI headline confirms the path we are on

We hear from Kashkari just yesterday but he’s back on the wires today:

• I haven’t had time to go through the CPI data in detail but on the headline level it seems to be confirming the path we’re on
• There are still six weeks before the Fed’s next meeting with more data to come
• I have confidence that inflation is headed in the right direction but we need to wait
• Sometimes I’m frustrated by the dot plot because there is so much uncertainty
• I have confidence that inflation is heading in the right direction
• There is tremendous uncertainty about where the neutral rate
• The longer the economy performs well, the more I believe that the neutral rate is higher
• I think the labor market is in a good place
• I still think the labor market is cooling
• We’ve underbuilt housing for the last decade, we can’t fix housing
• Monetary policy is the wrong tool to address asset bubbles

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