Fed's Kashkari says Trump's plan to reopen economy makes sense

Federal Reserve Bank of Minneapolis president Neel Kashkari says while the Federal Reserve is providing liquidity to the economy, the ultimate challenge is left to Congress because they have the spending and taxing authority during the coronavirus pandemic.

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One Federal Reserve member says the plan that President Trump has revealed for reopening the U.S. economy makes sense.

That is what Minnesota Fed Bank President Neel Kashkari told FOX News host Tucker Carlson.

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Trump presented guidelines on Thursday for U.S. states to emerge from a shutdown in three stages.

"When I looked at the president's plan it seems consistent with the advice and the feedback that we've heard from health experts, that there is a way to slowly reopen the economy," said Kashkari. "Obviously we want to try to avoid the virus flaring back up again and giving back the gains that we've had, and I think a staged approach, looking over the horizon, makes sense."

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Kashkari was asked about what shape the U.S. economy is at this point.

"This is the deepest and the quickest shutdown of the economy" on record, he said.

Over 20 million people have filed for unemployment benefits in just a few weeks. Kashkari says "That is staggering."

Kashkari says business leaders are telling him they need grants and not loans to stay afloat.

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Kashkari said that a big threat is low inflation and low prices "I think we have the tools to stave that off, so I think over the long run, inflation is a concern, but I don't think it is a concern as we try to address this virus."