Minneapolis, MN
Minneapolis Fed's Kashkari on why there's still so much economic uncertainty
When Neel Kashkari first joined the Federal Reserve eight years ago, he quickly gained a reputation of being a frequent dissenter who often opposed raising rates.
These days, the president of the Minneapolis Fed has found himself in the opposite position: mostly agreeing with the rest of the rate-setting committee.
He fully participates in every meeting of the Federal Open Market Committee, but only has a vote on it every few years. Last year when he was a voting member, Kashkari didn’t object once to hiking rates or holding them steady as part of the Fed’s war on inflation. More recently, he’s also seen eye-to-eye with other policymakers on being patient and waiting awhile longer before they start cutting rates.
“I’m not shy about expressing my view,” he said in an interview.
But it takes a lot of confidence on what’s going on in the economy to say your view is right and the rest of the committee is wrong, he said.
“And right now, we’re getting so many mixed signals,” he said. “And things are reacting differently than we had expected. It’s hard to have that type of confidence or conviction.”
Never one to completely go along with the crowd, Kashkari has set himself apart in other ways. For example, he has suggested the Fed keep interest rates high for longer over time than most others on the committee. That makes him a “hawk” in Fed speak, a reversal from pre-pandemic days when he was a “dove” who wanted to keep rates low.
Regardless, Fed officials, including Kashkari, are hopeful as inflation has been coming back down after soaring to more than 9% at one point in 2022. Since then, the consumer price index has cooled off considerably to 3.1%, inching closer to the Fed’s 2% target.
And it’s happened so far without a much-anticipated and feared recession.
Kashkari answered far-reaching questions about the economy, edited here for length and clarity.
Q: First, how are lasagna prices these days? (A tray of frozen lasagna he often buys for his family has become one of his unofficial inflation gauges.)
A: The interesting thing is, I saw it in Lunds maybe a month or two ago. Before the pandemic, it was about $16. And then it went up to around $21. And it was still $21. But they had a sale — $5 off. So it was back down to $16. So I bought two.
Q: Any other observations from the grocery store about inflation or supply chains?
A: The shelves are usually full now. I think supply chains are mostly back to normal. We see that in the data. I see that in real life. But what people are experiencing is, by and large, prices aren’t coming down. They’ve just stopped rising. So that’s the big disconnect. We say, ‘Hey, we’re winning over on inflation because inflation is coming back down.’ But people aren’t happy because prices are still high generally speaking.
Q: The inflation data looks pretty good right now. How confident are you that the war on inflation is almost over?
A: It’s definitely going in our direction. I think we’re all reluctant to declare victory prematurely. I wish I could say, ‘We did a great job and that’s why inflation has come down.’ I think we’ve played an important role. But I think mostly it’s been supply [chains healing]. So in a sense, the inflation rates were transitory, just a lot longer than we anticipated.
Q: Why didn’t higher interest rates cool off the economy very much?
A: I do think it’s happened somewhat, but I think this goes back to the notion of a neutral interest rate. There are dynamics when the economy is recovering from a downturn, in this case the COVID downturn, when all of a sudden the neutral rate can go up. If there’s all this pent-up demand, it’s possible that that neutral rate has just soared in the short run. The big question is, where’s it going to settle in the long run once we get through this reopening period? That’s a big macroeconomic debate people are having. Are we going to go back to a low-rate environment that existed for a decade before, or are we going to something different? And I’ve heard really good arguments both ways. Nobody knows for sure.
Q: What gives you the most pause about inflation now?
A: We weren’t able to diagnose the high inflation when it hit us. And then we didn’t do a very good job of diagnosing why it stayed high for as long as it did. And now, we’ve been surprised at how quickly it’s come down in the past six months. There’s so much about this economy that is hard to have confidence in. It makes me reluctant to be too definitive in saying anything right now.
Q: Is there anything in particular you’re waiting to see before you say, ‘OK, now we can lower rates?’
A: A few things. One we want to have, and this is what Chairman [Jerome] Powell has said. It’s not that we need to see better inflation data. We just want to see more data, which is also good data, until we’re really confident we’re going get back to 2%. So on the inflation front, let’s just get a little bit further away before we start lowering rates. Because financial markets are so prone to exuberance. The moment we give a hint, they run off to excesses. And so if we even say, ‘Well, we’re going to cut 25 basis points,’ they’re going to say, ‘Hallelujah, they’re going to extrapolate it far beyond what we intend.’ And so I think we’re all saying, ‘Let’s be really sure before we make that first cut.’
Q: Why did labor supply bounce back so much? Initially there was a lot of uncertainty if workers who left the labor market during the pandemic would ever return.
A: We don’t know fully. Immigration is definitely playing a role. But I also think it’s just Americans want to work. And maybe it’s the inflation, that people are saying, ‘Oh my gosh, prices are going up, I need to work just to try to keep my head above water.’ Some of those retirees, maybe they went back to work part-time. Maybe remote work opened some possibilities for some folks. Maybe all of the above.
Q: What’s been the biggest surprise for you about the economy?
A: Just the resilience — GDP [gross domestic product] continuing to put up great numbers. And by the way, people wanting to spend.
Q: You’ve talked about a gas station you go to that put in a bunch of automated screens to help with the labor shortage. Do they still have them?
A: No, they got rid of them. A few months ago, I went in there and they had ripped out all the computer screens and went back to glass doors. And I went up to the manager and said, ‘What’s going on? You just spent all this money on these computer screens.’ And he said, ‘Oh, yeah, those never worked right. And besides, we’re fully staffed now.’
Q: Does the labor shortage seems to be getting better?
A: Businesses say it’s still tight. They still have to work hard to find the workers they need, but it’s much better than it was a year or two ago. The unemployment rate is still low and wages are still growing attractively from a worker’s perspective. And then you have the structural issue that this whole region does not have enough workers over the long term.
Food insecurity in Minnesota: SNAP cuts and rising demand
Minnesota food shelves are facing growing pressure as potential federal SNAP cuts, rising grocery prices and increased demand strain already limited resources. Some providers also report impacts tied to recent immigration enforcement activity, with families hesitant to seek assistance. Wendy Behm of ACBC Food Shelf joins to discuss how organizations are responding, efforts to combat food insecurity across the state, and what’s at stake during the current legislative session. Learn more at acbcfoodshelf.com.
MINNEAPOLIS (FOX 9) – A Minneapolis grocery store owner is facing a felony charge after investigators say he trafficked more than $1.1 million in SNAP benefits using other people’s EBT cards.
SNAP benefits trafficking investigation leads to felony charge
What we know:
According to criminal charges filed in Hennepin County Court, Abdidwahid Mohamed, owner of Minnesota Food Grocery LLC, is accused of using EBT cards registered to other people to purchase items like energy drinks and baby formula at Sam’s Club and Costco between March 8, 2021 and August 10, 2021. The goods were then resold at his store.
The complaint states law enforcement says they watched Mohamed make the purchases and tracked him returning directly to his store with the items. Video surveillance and GPS data confirmed the trips, and investigators say many of the EBT cardholders were out of the country or denied shopping at the stores Mohamed visited.
The complaint states, “Mohamed received $1,141,082 in EBT payments” during the period in question. The federal Supplemental Nutrition Assistance Program (SNAP) is designed to help low-income households buy food, with benefits issued through EBT cards that work like debit cards.
Wal-Mart team sparks investigation
The backstory:
The investigation began when Wal-Mart’s Global Investigation Team flagged suspicious EBT transactions at Sam’s Club locations in Minneapolis. The Minnesota Bureau of Criminal Apprehension (BCA) was contacted in May 2021, and surveillance of Mohamed followed.
The complaint states on Aug. 10, 2021, law enforcement executed search warrants at Mohamed’s store and vehicles. He was arrested at a Sam’s Club in Bloomington with an EBT card and a handwritten note containing a PIN number. Interviews with more than two dozen EBT cardholders revealed that many claimed their cards were lost or had never been used at the stores in question.
One woman admitted she had not shopped at Minnesota Food Grocery for more than a year-and-a-half after agreeing to let Mohamed use her EBT card.
The complaint states the offense “involved a high degree of sophistication or planning or occurred over a lengthy period of time.”
What’s next:
If convicted, Mohamed faces up to 20 years in prison or a $100,000 fine.
The Source: Information from a criminal complaint filed in Hennepin County District Court.
Minneapolis, MN
Truck driver dead after crash sends Metro Transit bus into home in south Minneapolis
It happened early Monday morning in Minneapolis.
One person is dead and another is hospitalized after an early-morning crash in south Minneapolis on Monday that sent a Metro Transit bus into a home.
It happened at around 4 a.m. at 10th Avenue South and East 38th Street, just a few blocks east of George Floyd Square.
A spokesperson for Metro Transit police tells 5 EYEWITNESS NEWS that a truck was speeding down 10th Avenue when it hit the back of the bus, ripping a tire off the bus and sending it into the front of a home.
The driver of that truck died, according to Metro Transit police, while the driver of the bus was taken to a hospital but is expected to be OK.
Officials say nobody besides the driver was on the bus at the time, and the home the bus hit was also empty at the time.
Investigators are still at the scene, working to clean up all of the debris and determine exactly what led up to the crash.
5 EYEWITNESS NEWS is at the scene and working to learn more. Download the KSTP app and follow 5 EYEWITNESS NEWS on social media for the latest updates.
Minneapolis, MN
Atlanta Dream survive thriller in Minneapolis, edge Lynx 91-90 to open 2026 WNBA season
The Atlanta Dream trailed by double digits, fought back twice and still needed Angel Reese’s game-saving block in the final seconds to survive.
Atlanta opened the 2026 WNBA season with a 91-90 victory over the Minnesota Lynx on Saturday night, powered by Allisha Gray’s 24 points, Te-Hina Paopao’s pull-up jumper with 12 seconds remaining, and a performance that left little doubt about what this team intends to do this season.
Reese’s block on Emese Hof’s layup attempt in the closing seconds sealed one of the most dramatic opening-night wins before 10,821 fans at Target Center.
When Minnesota pushed its advantage to 13 points in the second quarter and the Dream looked like they were in serious trouble, Allisha Gray took over. The veteran guard finished with a game-high 24 points on 7-of-18 shooting, going a near-perfect 9-of-11 from the free throw line to go along with eight rebounds, three assists and two steals.
Gray’s ability to get to the line and convert kept Atlanta within striking distance throughout a game that could have spiraled out of control multiple times. She scored 11 points in the third quarter alone as the Dream chipped away at Minnesota’s lead.
Rhyne Howard was equally important on both ends, finishing with 15 points, five assists and three steals. Jordin Canada ran the offense efficiently with 12 points and six assists, and Paopao added six points and four assists in a composed performance off the bench.
With Atlanta trailing 85-87 and the clock winding down, Naz Hillmon stepped back and drained a 22-foot three-pointer with 2:44 left to tie the game and silence the fans in the Target Center. It was the shot of the night, and arguably the play that won Atlanta the game.
Hillmon finished with 15 points on an efficient 6-of-10 from the field, adding seven rebounds in 33 minutes. She was the Dream’s most reliable scorer off the bench and delivered her best basketball when Atlanta needed it most.
Rookie Madina Okot also impressed in her WNBA debut, scoring eight points on 3-of-6 shooting with four rebounds in just 10 minutes, showing the poise and physicality that earned her a roster spot out of training camp.
Angel Reese’s first game in a Dream uniform was complicated. She shot 4-of-11 from the field, committed five turnovers and picked up a first-quarter technical foul that gifted Minnesota a free point. At one point in the first half, she missed three consecutive shots on the same possession.
But Reese also grabbed 14 rebounds, nine on the offensive glass, blocked three shots, came up with two steals, and made the most important play of the game when it mattered most. Her block on Hof’s layup in the final seconds was the kind of athletic, instinctive play that changes games and defines seasons.
That is the player Atlanta acquired this offseason. On opening night, in the most pressure-packed moment of the game, she showed exactly why.
Minnesota had every opportunity to win this game and couldn’t finish it. Olivia Miles finished with 21 points on 6-of-14 shooting and eight assists to go along with eight free throws made. Kayla McBride scored 20 points and hit the go-ahead three-pointer with 1:11 left that looked like it might be the dagger.
Courtney Williams added 14 points and six assists, and the Lynx shot 50 percent from the field, a number that should have been good enough to win.
But 15 turnovers and an inability to execute in the game’s final minute proved too costly. Minnesota had chances to put Atlanta away in the fourth quarter and couldn’t. The Dream made them pay every time.
Atlanta continues its opening road trip Tuesday against the Dallas Wings before returning home for the May 17 opener against the defending champion Las Vegas Aces at State Farm Arena. Minnesota hosts Atlanta again on May 27.
-
New York1 hour agoAirbnb Turns to Black Leaders in Its Bid to Make a Comeback in New York
-
Detroit, MI2 hours agoMetro Detroit braces for Frost Advisory, Freeze Warning overnight before rain arrives
-
San Francisco, CA2 hours ago50 Beagles Rescued From Wisconsin Lab Arrive in Bay Area, SF Activist Faces Felony Charges
-
Dallas, TX2 hours ago
Former Cowboys QB Craig Morton passes away at age 83
-
Miami, FL2 hours agoBrickell Avenue Bridge openings spark rush hour gridlock concerns in downtown Miami
-
Boston, MA2 hours agoWhat we know about accused Memorial Drive gunman Tyler Brown
-
Denver, CO2 hours agoBroncos Ring of Famer Craig Morton, who led Denver to first Super Bowl, dies at 83
-
Seattle, WA2 hours agoVictim identified in deadly Seattle beer garden shooting on Lake City Way; suspect sought