Fed's Kashkari: Risks to the downside have increased over last six months

In an interview with Stifel Financial on Friday, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said that he is not forecasting a recession but added that risks to the downside have increased over the last six months.

"The US economy is sending mixed signals," Kashkari said. "Consumers are strong, but businesses appear to be nervous, pulling back on spending and hiring."

The US Dollar Index largely ignored Kashkari's comments and was last down 0.12% on the day at 97.45. Below are some additional quotes, per Reuters.

"Europe, Germany, China are slowing, and the US will feel that."

"The yield curve is signalling the Fed policy may be slightly contractionary."

"Monetary policy should be somewhat accommodative in light of the risks we are seeing."

"I expect the inflation to undershoot 2% target for the foreseeable future."