Fed's Kashkari: Economy may not be slowing as much as we think

Oct 16 (Reuters) - Minneapolis Federal Reserve President Neel Kashkari said Thursday he does not think that there is a big chance the labor market will weaken sharply or inflation will surge, though he does worry about the risk that inflation could stay persistently above 3%.

"I think that there's more risk of a labor market negative surprise than a big uptick in inflation," Kashkari said at a town hall in Rapid City, South Dakota. "On the other hand, if I were to guess which mistake we're more likely making, I think we're more likely betting that the economy is really slowing more than it really is."