Neel Kashkari is “very cautious” about the trajectory of inflation.
The president and CEO of the Federal Reserve Bank of Minneapolis, speaking at a regional business event in northern Michigan on Thursday, said key measures of inflation have remained above the U.S. central bank’s stated 2% target for more than five years.
The duration of that target miss runs the risk that businesses and consumers may believe higher inflation is the “new normal” for the economy, Kashkari warned, which he described as “very problematic.”
A “wet blank of uncertainty” dominates discussions Kashkari has had with his regional business community, especially about “what the next few years are going to look like.” Amid such deep uncertainty, he said, investment and...