Soft landing statement from Fed member

Fed member Neel Kashkari indicated that although he expects a slight increase in unemployment, they can achieve a soft landing. Fed member Neel Kashkari stated that the inflation outlook in the US is quite positive and that the tightening process may result in some job losses. Speaking to CBS television on Sunday, Minneapolis Fed President Kashkari said, “The economy continues to surprise by showing how resilient it is. I foresee a base case scenario where we will slow down the economy but avoid a recession.” Kashkari noted that the unemployment rate, currently at 3.6 percent, could rise to 4 percent in the coming months and said, “In my opinion, this is still a soft landing.” Kashkari commented on the core PCE data, which was released last Friday and was the lowest level since 2021, and which the Fed preferred for its 2 percent target, “4.1 percent is still far from our target.” July US nonfarm payrolls data will be released on Friday this week. Median estimates at the beginning of the week were that the U.S. economy would create 200,000 net nonfarm jobs in July and the unemployment rate would remain unchanged at 3.6 percent.