Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, has reiterated his deeply skeptical stance on cryptocurrency, labeling it as "basically useless" for consumers during a live virtual event on January 14, 2026. While providing a broad economic outlook covering inflation, interest rates, and housing, Kashkari singled out digital assets for sharp criticism.
Kashkari's economic commentary was broadly optimistic, forecasting "pretty good growth" for the U.S. economy and noting that inflation is "heading down," though its precise path to the Fed's 2% target remains uncertain. He described the economy as "quite resilient" and highlighted a cooling housing market. However, he framed the recovery as "K-shaped," indicating uneven progress across different sectors.
On monetary policy, he pushed back against notions that recent balance sheet growth constitutes quantitative easing (QE), stating, "I don't see a need for quantitative easing." He also commented on tariffs, unemployment, and defended the Fed's independence.
The core of his critique focused on technology. While acknowledging Artificial Intelligence (AI) is in a testing phase within businesses, he was unequivocal in his dismissal of crypto. This view is not new; Kashkari has a long history of bearish statements. In 2018, he called the market a "farce," in 2020 a "giant garbage dumpster," and in August 2021 famously declared the sector "95% fraud, hype, noise and confusion." Following the 2022 market crash, he suggested the implosion was positive as it protected future investors. As recently as October 2024, he questioned the legitimacy of crypto transactions.
His latest comments reinforce a consistent narrative from a key Fed official: that cryptocurrency lacks a legitimate consumer use case in an advanced economy and represents more of a speculative gamble than a functional financial innovation.
