Minneapolis Fed chief Kashkari hopeful US economy can avoid recession as inflation fight continues

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The odds of the U.S. avoiding a deep recession and achieving a «soft landing» are rising as the Federal Reserve tries to bring down inflation, but the economy isn’t out of the woods yet according to a key figure at the central bank.

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, appeared on CBS’ «Face the Nation» Sunday and told host Margaret Brennan that he agrees with Fed economists who increasingly view the U.S. economy as likely to end this inflation cycle without a significant hit to the labor market. 

«That’s our base case scenario, the economy continues to surprise how resilient it is, that’s a really good thing, as your reporting just showed the unemployment rate is still very low of 3.6%» Kashkari said. 

«Nonetheless, I’m not going to dismiss the hardship that Americans are feeling. High inflation for several years has really put a dent in people’s pocketbooks. We’re now starting to dig our way out of that,» he explained. «So, we’re making progress. But I’m also not surprised that people are still frustrated by how long it has taken to get here.»

FED HIKES INTEREST RATES TO 22-YEAR HIGH AS INFLATION FIGHT RESUMES

The Fed is looking to achieve a «soft landing» by getting inflation down to 2% without inflicting too much damage on the labor market. (Yasin Ozturk/Anadolu Agency via Getty Images / Getty Images)

Kashkari is one of the 12 Fed officials who serve as voting members of the Federal Open Market Committee, which makes decisions about the central bank’s monetary policies that influence interest rates, which in turn have an impact on the rates