Fed's Kashkari: The balance of risks has shifted towards higher employment

Balance of risks have shifted away from higher inflation towards maybe higher inflationOverall the US economy is resilientNot seeing signs of resurgent inflationReduction in new rents gives us confidence that housing inflation will come downWe could be surprised by stresses on particular banks from office sector real estateWe're watching office very carefully but not seeing evidence of systemic riskI'm deeply enthusiastic about generative AIUnderbuilding is a big source of housing inflationSupply chain disruptions, labor shortages are another source of housing inflation, as is the risk of work from homeBalance sheet shrinking has 'a ways to go'There is huge uncertainty about neutral rate, I see it close to 3%More to come as he participates in a moderated discussion. This article was written by Adam Button at www.forexlive.com.