Fed Official Kashkari: Interest Rates Near Neutral, Cryptocurrencies Are Useless

Monetary Policy and the Labor Market Minneapolis Fed President Neel Kashkari shared critical insights regarding the current state of the U.S.
economy and monetary policy.
Emphasizing that the Fed has made significant progress toward its goals of price stability and full employment, Kashkari stated that current interest rates are quite close to a neutral level.
The President described the labor market's performance as ranging between "good and very good." However, he added that feedback from the business community indicates a cautious stance regarding new hiring.
Criticism of Crypto Assets and AI Expectations Maintaining his harsh stance on the cryptocurrency market, Kashkari described these assets as "completely useless." He argued that crypto technology provides no tangible benefit compared to existing financial systems.
In contrast, he expressed optimism regarding artificial intelligence.
Predicting that AI could significantly contribute to productivity growth over the next 5 to 10 years, the President noted that the Fed is evaluating this technology cautiously within the framework of security protocols.
Housing Market and Fiscal Discipline Addressing the housing supply issue in the U.S., Kashkari noted that challenges in the sector cannot be explained by interest rates alone.
He identified zoning laws, material costs, and labor shortages as the primary factors.
Kashkari also emphasized the Fed's independence, reminding that decisions are made solely based on data.
Furthermore, he stated that the national debt level is not a direct criterion in the Fed's short-term interest rate decisions, noting that this issue falls entirely under the responsibility of fiscal policy.