But says employment remains strong
Minneapolis Fed Pres. Neel Kashkari speaking at a town hall meeting is saying:
- Outlook for US economy is mixed, but jobs remain strong
- we are seeing wages slowly start to pick up
- Investment slowing, we seeing signs of slower hiring
- US exporters are nervous about trade war
- He argued for a steeper rate cut at the last FOMC (so is likely one of the 7 members who sees a 25 bp cut between now and the end of the year).
- does not see the recent repo strength as a big problem
- if US goes beyond maximum employment, inflation will rise above 2%
- US is a long way from the labor market leading to 2% inflation
- Thinks the Fed would not turn to QE until short-term rates were cut zero
- inverted yield curve is a concerning signal even though he's not forecasting a recession
Kashkari is not a voting member of the FOMC this year but will be in 2020
