Minneapolis Fed Reserve’s Kashkari Faces the Nation to emphasize focus on inflation, not political pressure

In an interview with Face the Nation’s always excellent Margaret Sullivan on Sunday, 10 November 2024, Neel Kashkari, president of the Minneapolis Federal Reserve, addressed the bank’s commitment to controlling inflation ("2%" was his refrain, referring not to the milk) amid political and economic pressures. Kashkari highlighted the Federal Reserve's primary goal of price stability, aiming to curb inflation without pushing the economy into recession. He acknowledged that some recent policy tightening has been challenging for businesses and households but underscored that inflation control is essential for long-term economic health.

Kashkari dismissed the notion that the Fed is influenced by political pressure or the upcoming election, stating that the institution’s independence is critical to its role in managing inflation effectively. He noted that while some inflationary pressures have eased, the Fed remains cautious. Kashkari did not provide a definitive outlook on future rate adjustments, emphasizing that the Fed would respond to incoming economic data.

Some may remember college economics, in which it's taught monetary, and not fiscal, policy is most responsible for inflation, pace the recent election.