Neel Kashkari, Interview: CNN

Jobs

“It tells me that we still have more work to do. But we’re not seeing much of an impact of the hikes that we’ve done over the last year yet showing up on the job market. We want Americans to find work. We want their wages to be strong, but right now the labor market, the job market is actually too hot. That’s going to make it harder to bring inflation back down.”

Fed Funds

“Well, I’ve penciled in going as high as 5.4%. I’m a little bit on the higher end than some of my colleagues. Ultimately, the committee will deliberate look at the data and make the call. But somewhere above 5%.”

Recession

“I’m not forecasting recession. And here’s the thing, the job market is stronger than I expected, which means it’s less likely we’re going to be in recession. But it also means it’s less likely that inflation is simply going to fall back down to 2% the way we need it to. And so, it’s a little bit of a mixed signal.”

“I wouldn’t say it’s impossible. I think we want to achieve what we call a soft landing, which is a gradual return to 2% inflation, where the labor market cools a little bit, but we avoid a recession. But to be honest with you, there’s not a great track record of pulling that off, and that’s what we’re nervous about.”