Watch CNBC's full interview with Minneapolis Fed President Neel Kashkari

Summary

Minneapolis Fed President Neel Kashkari joined CNBC's Squawk Box to discuss the cooling labor market, still-elevated inflation, and a monetary policy stance he sees as close to neutral. He emphasized data dependence, tariff persistence, and AI-driven productivity gains, while downplaying risks from private credit and geopolitical oil shocks. The conversation also covered Fed independence, the U.S. consumer, and the outlook for rates.

• Kashkari says the labor market is cooling, with unemployment at 4.6% and low hiring.
• He sees inflation as still too high, with tariff effects potentially persistent.
• He believes policy is close to neutral and the Fed needs more data before moving.
• AI is affecting hiring plans, with real productivity gains emerging but some malinvestment.
• Private credit is less levered than banks and unlikely to cause a 2008-style crisis.
• Geopolitical shocks mainly transmit through oil prices; no Venezuela shock so far.
• He supports Powell remaining as Fed Chair and is not concerned about Fed bank president firings.
• The discussion touched on high nominal GDP, K-shaped consumer pressure, and potential deregulation.