Recently, Minneapolis Federal Reserve President Kashkari made important remarks that drew market attention. He emphasized the complexity of the current economic situation and clearly opposed the practice of rapid or large interest rate cuts, believing that this could lead to inflation rising again.

Kashkari pointed out that the U.S. economy is facing a dual challenge of slowing growth and inflation above target, showing potential signs of 'stagflation.' This view has caused fluctuations in the market, leading to a significant decline in the stock market, with the Dow Jones Industrial Average dropping nearly 200 points, and the Nasdaq index also following suit.

Kashkari holds a cautious attitude toward the feasibility of aggressive rate cuts. He believes that stimulating economic growth beyond potential levels through aggressive rate cuts is, in fact, a short-sighted act that not only fails to achieve a sustainable recovery but may also backfire and push prices higher. The latest data shows that U.S. private sector job growth was weak in September, with only 17,000 new jobs added, marking a multi-year low, reflecting insufficient endogenous momentum in the economy. In this context, overly accommodative monetary policy may not effectively boost employment, but rather exacerbate inflationary pressures and increase the cost of living for residents.

In addition, the recent government shutdown in the United States has led to delays in the release of several key economic data, increasing the difficulty for the market to assess the true state of the economy. If the risk of 'stagflation' becomes a reality, ordinary people will face the dual pressure of stagnant income growth and rising living costs, which may significantly affect their quality of life.

In the current economic situation, investors need to act cautiously and focus on risk management. This is particularly important for individual investors, as avoiding blind chasing of highs or excessive speculation is crucial. In the face of market uncertainty, adopting a more conservative and defensive investment strategy may be a wise choice.

Overall, Kashkari's remarks highlight the complexity and challenges of current economic policy-making. Decision-makers need to find a balance between stimulating economic growth and controlling inflation, while investors must closely monitor economic indicators and policy trends, adjusting their investment strategies in a timely manner to respond to potential market fluctuations.