According to breaking news, FED member Neel Kashkari stated that “cryptocurrencies are fundamentally useless for consumers.”
Kashkari argued that the next Fed Chairman should act on strong arguments, reminding everyone that the chairman only has one vote on the Federal Open Market Committee. He also touched upon the importance of central bank independence, stating that all officials agree that an independent central bank can formulate the best policies.
Kashkari stated that inflation has been the main driver of the financial difficulties experienced so far, but added that they have not seen a particularly worrying picture on the consumer credit side yet. Noting that household balance sheets are generally quite healthy, Kashkari said that companies’ artificial intelligence applications are largely in the testing phase and have not yet led to a significant wave of layoffs.
In his assessment of the labor market, Kashkari stated that he was quite confident in an outlook where employment was flat and inflation was gradually easing. However, he noted that it would take several more months for government data to fully recover from the effects of the lockdown, adding that uncertainties regarding the current equilibrium rate for the labor market persisted.
*This is not investment advice.