According to data released last Thursday by the Bureau of Economic Analysis, the country’s gross domestic product declined for the second consecutive quarter, which is often a symptom of an impending economic recession. However, one analyst doesn’t agree in this instance.
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, does not believe we are heading towards a recession nor that it matters. Instead, Kashkari wants to focus on resolving inflation and decreasing costs as inflation continues to rise. Since the labor market is strong, a recession is unlikely to happen.
In a recent edition of CBS’s “Face the Nation,” Kashkari said, “We’re going to do everything we can to avoid a recession, but we are committed to bringing inflation down.”
Kashkari commented on the economic situation by stating, “I’m focused on the inflation data. I’m focused on the wage data. And so far, inflation continues to surprise us to the upside. Wages continue to grow.”
However, the president of the Federal Reserve Bank of Minneapolis is also aware that the United State’s 9.1% inflation is offsetting the increases in wages. While it is true that people are making more money on average, it is not on par with the increasing costs of daily life.
In another comment, Kashkari highlighted how the Federal Reserve has work to do to beat inflation, regardless of a recession. He stated, “Whether we are technically in a recession or not doesn’t change the fact that the Federal Reserve has its own work to do, and we are committed to doing it.”
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