Minneapolis Fed President Neel Kashkari says the US economy remains “robust” beyond the artificial intelligence boom, even as housing comes under pressure and capital flows into data-center investment.

In a Bloomberg TV interview on October 1, 2026, Kashkari said consumer spending remains strong, unemployment is 4.1 percent, and layoffs and jobless claims are low. “It’s not just an AI economy,” he said, noting resilience despite tariffs, geopolitical conflict, and elevated yields.

He warned that roughly $1 trillion flowing into data centers must come from elsewhere. Markets reallocate capital from areas like housing, with higher mortgage rates acting as part of that mechanism.

Kashkari flagged a wide gap between the actual two-year Treasury yield near 4.88-4.90 percent and the roughly 4 percent implied by Fed projections, calling it “very, very large.”

The Federal Open Market Committee raised its target range by 25 basis points to 3.75-4 percent in September, with a median projection of 4.1 percent for end-2026.