Minneapolis Federal Reserve President Neel Kashkari said on Tuesday that inflation moving sideways raises questions about how restrictive policy is, per Reuters.

Key takeaways

"Housing market is proving more resilient to tight monetary policy than it has been in the past."

"Possible that housing market resilience means neutral rate has been pushed higher at least in the short term."

"Inflation progress seen in latter half of 2023 appears to have stalled; question is whether disinflation is still underway or just taking longer."

"Recent slow GDP due to inventories and net exports; underlying demand remained strong."

"Yield curve inversion does suggest that policy is tight."

"Among factors sustaining housing market are inadequate supply, and demand possibly boosted by immigration, work from home arrangements."

"Inflation moving sideways raises questions about how restrictive policy is."

"Policymakers misperceiving the current neutral rate could explain current data.