Fed's Kashkari (2026 voter) says he is concerned about inflation, especially in services; seeing some signs of life in the labour market
- Inflation move up not just about oil and the Middle East.
- See rates on hold in 2027.
- Appropriate time to reset the Fed statement.
- Has one rate hike pencilled in for 2026.
- Going to have to see how no forward guidance works.
- Fed may need to raise rates amid broad inflation.
- Not seeing the all-clear sign in the Middle East.
- The labour market is not causing inflation right now. Inflation is being driven by supply issues, including the AI-buildout.
- AI probably pushing up market interest rates.
- Still bullish on labour prospects, despite AI.
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