Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari noted on Monday that the overall balance of risks has tilted slightly into labor headwinds, with progress on inflation continuing.

Key highlights

The balance of risks have shifted away from higher inflation towards maybe higher unemployment.

Overall the US economy is resilient.

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

I am not seeing signs of resurgent inflation.

Reduction in new rents inflation gives us confidence that housing inflation will come down over the next 12-24 months.