Kashkari is participating in a moderated Q&A followed by an audience Q&A. I’ll update the headlines as they roll in.
- We have been surprised by the economy’s resilience
- Question is whether we have done enough or need to do more
- On average the banking system is stable and well capitalized
- The March banking event was a wake-up call for banks
- Housing market resilient has been one of the biggest surprises
- We underbuilt in housing and there’s a structural deficit
- The last couple inflation readings have been positive
- I want to see convincing evidence that inflation is on its way to 2%
- We need to avoid 1970s style outcome where we stop hiking too soon
- We’re a long way from cutting rates because core is still close to 4%
- At some point next year the Fed may need to lower rates
- Economy keeps exceeding expectations
- I’m not seeing any signs of a crisis in China, it’s something we’re watching
Kashkari went on a bit of a rant about land use and zoning as a problem that’s holding back home construction and making homes unaffordable.