Federal Reserve Bank of Minneapolis President Neel Kashkari struck an optimistic tone Wednesday, projecting continued U.S. economic growth alongside easing inflation. Speaking at a virtual event, he acknowledged prices remain too high but are moving in the right direction toward the central bank's 2% target. Kashkari expressed uncertainty about the exact pace of decline but felt confident about the overall trajectory.

Kashkari described the economy as "quite resilient," noting it hasn't slowed as much as expected. He characterized the recovery as "K-shaped," indicating uneven gains across different economic segments. While he sees housing inflation easing, Kashkari warned that tariffs could still cause another price bump, though their impact hasn't been as severe as some feared.

Regarding monetary policy, Kashkari questioned just how tight current policy is and dismissed the need for quantitative easing. He emphasized the Fed's commitment to balancing its dual mandate of employment and price stability, which he noted are currently "in tension." He also highlighted that household balance sheets remain healthy, with inflation being the primary driver of financial strain.

Looking ahead, Kashkari offered sharp views on other sectors, suggesting artificial intelligence use in business remains mostly experimental and hasn't spurred widespread layoffs. He was blunt about cryptocurrency, calling it "basically useless" for consumers. He identified housing supply as the biggest market barrier and reaffirmed his belief in an independent central bank making the best policy decisions.