Federal Reserve Bank of Minneapolis President Neel Kashkari used a speaking appearance in North Dakota on Thursday to voice sharp skepticism about cryptocurrency while defending the autonomy of the central bank from political pressure.
Speaking to an audience and taking questions, Kashkari was direct about his view of crypto's real-world role. He said: "crypto has been around for more than a decade and it’s utterly useless," drawing a contrast with technologies such as artificial intelligence that he said are in daily use.
On innovations tied to payments, the Fed official challenged claims about stablecoins' advantages. He pointed to widely used consumer payment platforms and asked rhetorically: "I can send any one of you $5 with Venmo or PayPal or Zelle. So what is it that this magical stablecoin can do?" The question underscored his view that existing payment rails already deliver convenient transfers for many users.
Kashkari also addressed recent public critiques aimed at the Federal Reserve. In particular he referenced comments by Kevin Hassett concerning a New York Fed study on tariffs, framing those remarks as part of a broader pattern of actions he said threaten the Fed’s institutional independence. He described Hassett’s remarks as "another step to try to compromise the Fed’s independence."
He further recalled an episode from December when, he said, "the Department of Justice served a subpoena to the Board of Governors over some building expenses," presenting that action alongside other attempts he sees as encroachments on central bank autonomy.
Kashkari stressed the importance of insulation from short-term politics, arguing that independent central banks produce better outcomes when monetary policy decisions are "based on data and analysis, not on short term political gains." He added that "every advanced economy in the world has an independent central bank" as a rationale for that institutional arrangement.
Turning to the macroeconomic picture, Kashkari said inflation has fallen into a range between 2.5% and 3%, while the unemployment rate has moved up from about 3.5% to 4.3%. He characterized the Fed’s current policy stance as "pretty close to neutral," noting that policymakers have cut interest rates "a bunch in the last couple of years."
On regional conditions, Kashkari reported a mixed picture. He said agriculture in the region is "under pressure," even as certain manufacturing and service industries are "doing well." He pointed out a noteworthy shift in local labor markets, saying that in his ten years of visiting North Dakota he had not previously heard businesses report being "fully staffed."
Context and takeaways
Kashkari's remarks combined a dismissive stance on the practical utility of much of the crypto sector with a robust defense of central bank independence amid what he described as a series of pressures. He reiterated macro readings that suggest easing inflation and a modest rise in unemployment while signaling that the Fed's policy stance is near neutral after several rate cuts.