Federal Reserve Bank of Minneapolis CEO on current economy and potential Trump tariffs

(CBS, KYMA/KECY) - Neel Kashkari, President & CEO The Federal Reserve Bank of Minneapolis, spoke to Margaret Brennan on Face the Nation Sunday about the current economy and inflation rate.

"We've made a lot of progress in bringing inflation down, and the economy has remained remarkably strong. We keep getting revisions to GDP that are- show that the economy is growing even faster than we had appreciated, and the unemployment rate is 4.1% so right now, the economy is in a good place. Inflation is still running around 2.5% or so, so we're not all the way home. We need to finish the job, but so far so good. I mean, I don't want to declare victory yet. We need to finish the job, but we're on a good path right now."

Neel Kashkari, President & CEO The Federal Reserve Bank of Minneapolis

During the interview, Brennan and Kashkari talked about President-Elect Donald Trump unveiling a plan "that estimates say would add $8 trillion to the deficit." When asked how concerned he is about rising deficits, Kashkari said:

"If you look over the long term, if you look at, for example, at the Congressional Budget Office forecast of debts and deficits, they grow to the moon. They grow unsustainably, so at some point, those have to be addressed, and that is purely the domain of the Congress and the executive branch to negotiate how to do that. At some point they have to be addressed. And so, our focus is whatever Congress and the administration decide to do, we have our goals. Our goals are 2% inflation and a strong labor market, maximum employment, and we will adjust our monetary policies to try to achieve that, but you're right. Over the long run, it's clear that the deficit needs to be addressed, but that is also, as I said, the domain of Congress and the executive branch to sort out."

Brennan also asked Kashkari if it's safe to say the president-elect will be taking office "with what appears to be the economy trending upwards," to which Kashkari said:

"The economy is strong. You know, when I reach out to businesses and labor unions all around my region, it's one of cautious optimism that the economy is doing well. There are jobs available, and we want to keep the economy doing well. We want to keep that growth going while we get inflation all the way back down to 2% and so right now, I would say we have a strong economy, and that's a really good thing, and our objective is to keep it there."

To watch more of Brennan's interview with Kashkari, click here.