Minneapolis Fed President Neel Kashkari (not a voting FOMC member) CNBC interview: Fed's first priority will be to make sure long run inflation expectations are anchored
Mr. Kashkari said:
- Paying close attention to the bond market.
- He is not seeing evidence yet that long run inflation expectations are climbing.
- If investors decide they want to invest overseas, that will push up yields.
- Dollar going down might indicate the preference of investors is shifting.
- The US is "quite a ways away" from having any problems with financial system.
- Tariffs are still high, despite pause. Inflation should rise in the short term.
- Fed will take care of the inflation site before worrying about the employment side.
- Fed's first priority will be to make sure long run inflation expectations are anchored.