"Minneapolis Fed Chief Remains Hopeful: US Economy's Recession Risk Diminishes Amid Ongoing Inflation Battle"

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, expressed optimism that the US economy can avoid a deep recession and achieve a "soft landing" as the Federal Reserve works to bring down inflation. Kashkari believes the economy has shown resilience and is making progress, but acknowledges the hardship caused by high inflation. The Fed aims to lower inflation to 2% without causing significant damage to the labor market. Kashkari stated that further interest rate hikes will be determined by data, and while he expects some job losses, he believes a modest increase in the unemployment rate can still result in a soft landing. The Fed recently raised interest rates to their highest level in 22 years and is projected to raise rates further this year.