Episode Overview

Podcast: Your Money Minute
Host: Jessica Ettinger (CNBC)
Episode Title: Fed Board Member Outlook 1/8/26
Date: January 8, 2026
Theme:
This succinct 60-second episode unpacks the latest perspectives from Minneapolis Fed President Neel Kashkari on inflation, interest rates, and the cooling labor market as the US moves into 2026. The focus is on how these macroeconomic factors impact the everyday listener, with practical financial advice included.

Key Discussion Points & Insights

1. The Federal Reserve’s Dual Mandate & 2026 Outlook

• Federal Reserve’s Goals: The Fed’s two central objectives are highlighted:
  • Promote full employment
  • Keep inflation low
• 2026 Inflation Outlook:
  • Jessica Ettinger relays that while markets await Fed action on interest rates, one Fed member forecasts continued inflationary pressure.
  • "For 2026, one Fed member says inflation will not only likely stick around, it could keep going up." (A, 00:13)

2. Neel Kashkari’s Inflation Warnings

• Persistent Inflation Risk:
  • Kashkari expresses concern that inflation remains "too high" and warns of ongoing persistence due to long-lasting tariff effects.
  • Quote: "Inflation is still too high. I don't think we're going to be surprised that inflation ends up being much higher than we are seeing right now. I think the inflation risk is one of persistence, that these tariff effects take multiple years to work their way all the way through the system." (B, 00:23)
  • Implication: Inflationary pressures might outlast current expectations, affecting consumers’ purchasing power for years.

3. The Cooling Labor Market

• Unemployment Rising:
  • Kashkari notes the national unemployment rate has increased to 4.6%, suggesting a clear cooling of the job market.
  • Quote: "I mean, the job market is clearly cooling. There's no question about that. We see this in the national statistics. The unemployment rate is up now to around 4.6%. There's a lot of questions on some of the data. I think the unemployment rate is pretty clean at 4.6%." (B, 00:43)
• Feedback from Businesses:
  • He shares anecdotal evidence from businesses in his region, stating, "When I talk to businesses in my region, they also say they're not hiring very much. So I think that that's a clear signal that the labor market is cooling."
  • Caution: He warns that unemployment could "pop from here"—meaning a potential further increase. (B, 00:58)

Actionable Advice for Listeners

• Build Your Emergency Fund:
  • Ettinger emphasizes the importance of having a safety net, especially with potential job losses on the horizon.
• Networking:
  • "Get networking in case your job goes away." (A, 01:08)
• Budget and Spending Awareness:
  • With rising prices, listeners are encouraged to use a budget and monitor spending more closely.

Notable Quotes & Memorable Moments

• On Persistent Inflation:
  • Neel Kashkari: "I think the inflation risk is one of persistence, that these tariff effects take multiple years to work their way all the way through the system." (00:28)
• On the Cooling Labor Market:
  • Neel Kashkari: "The job market is clearly cooling... The unemployment rate is up now to around 4.6%." (00:44)
• On Practical Steps:
  • Jessica Ettinger: "Build your emergency fund and get networking in case your job goes away. And use a budget and be mindful of spending as prices rise." (01:07)

Timestamps for Key Segments

• 00:00–00:13 — Introduction; The Fed’s dual objectives and 2026 outlook
• 00:23–00:38 — Kashkari on persistent inflation and tariffs
• 00:43–01:07 — Kashkari on the cooling labor market and unemployment risk
• 01:07–01:13 — Actionable advice for listeners

Episode Summary

This episode delivers a snapshot of current Fed thinking: Inflation remains stubborn and could rise further due to lasting tariff impacts, while the labor market is increasingly slack with higher unemployment and reduced hiring. Jessica Ettinger translates these macro forces into essential personal finance tips: bolster your emergency savings, connect within your industry, and stick to a careful budget. For listeners, the message is clear—be prepared for continued economic uncertainty in 2026.