The balance of risks tilted towards rising unemployment

Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari noted on Monday that the overall balance of risks tilted slightly to the headwinds of labor as progress on inflation continued.

Key highlights

The balance of risks has shifted from higher inflation to perhaps higher unemployment.

Overall, the US economy is resilient.

The job market still looks strong, we want to keep it that way.

I see no signs of inflation reviving.

The reduction in new rent inflation gives us confidence that housing inflation will ease over the next 12-24 months.