Neel Kashkari on Data and Politics

In a recent interview with CNN, Federal Reserve Bank of Minneapolis President Neel Kashkari shared his views on the importance of data in monetary policy decisions, steering clear of political commentary. He refrained from discussing President Donald Trump's decision to dismiss the head of the Bureau of Labor Statistics (BLS), emphasizing that such personnel decisions are within the president's prerogative.

Reliance on Economic Data

Kashkari highlighted the Fed's reliance on both government and private sector data to guide its monetary policy. "We at the Fed lean on and rely on the best economic data we can get," he stated. When questioned about potential political interference in data, Kashkari expressed confidence in the integrity of the figures he reviews, noting they consistently reflect the economy's state.

Economic Impacts of Tariffs

He also addressed the economic effects of tariffs, stating, "The data was worse than I had expected. But when tariffs go up, you expect prices to go up and the economy to slow, and we're seeing both of those effects." This candid admission underscores the tangible impacts of trade policies on the economy.

On Kugler's Resignation

Regarding the resignation of Federal Reserve Governor Adriana Kugler, Kashkari shared his surprise at her decision but noted her term was nearing its end. He praised her as a valuable colleague and mentioned the anticipated appointment of her successor by the president.