“Over the short term, the demand side effects totally swamped the supply side effects. And so, when I look at a bill that’s being considered that your two senators talked about, my guess is over the next couple of years, it’s not going to have much of an impact on inflation,” he said. “It’s not going to affect how I analyze inflation over the next few years. I think long term it may have some effect, but over the near term we have an acute mismatch between demand and supply, and it’s really up to the Federal Reserve to be able to bring that demand down.”

The White House has repeatedly held back from admitting the U.S. economy is in a recession and has been debating the definition of the term. On Sunday, Kashkari argued that inflation is so bad that it doesn’t matter if we use the term recession or not, and seriously work needs to be done to address it.

“Fundamentally, the labor market appears to be very strong while GDP, that the amount the economy is producing appears to be shrinking. So, we’re getting mixed signals out of the economy. From my perspective, in terms of getting inflation in check, whether we are technically in a recession or not doesn’t change my analysis,” he said. “I’m focused on the inflation data. I’m focused on the wage data. And so far, inflation continues to surprise us to the upside. Wages continue to grow. So far, the labor market is very, very strong. And that means whether we are technically in a recession or not doesn’t change the fact that the Federal Reserve has its own work to do.”

“We are a long way away from achieving an economy that is back at 2% inflation. And that’s where we need to get to,” Kashkari added.