Kashkari: No Evidence of Long-Term Inflation Increase, Market Shifts Likely

Neel Kashkari, a member of the Federal Reserve, addressed market concerns about inflation and the economic outlook. He highlighted that there’s currently no evidence suggesting rising long-term inflation expectations among investors. He points out a possible decrease in the trade deficit as a reason for potential shifts in U.S. investment appeal. Kashkari emphasized that current market conditions differ significantly from those experienced during the COVID-19 pandemic, and transitional processes can be managed to address certain imbalances. However, predicting yields’ stability remains uncertain, focusing on smoothing transitions as key action points.