Federal Reserve Bank official discusses Montana economy, blasts cryptocurrency during Helena visit

If you’re a fan of cryptocurrency, you may want to steer clear of Neel Kashkari.

“Cryptocurrency is a joke,” the president of the Federal Reserve Bank of Minneapolis said Thursday, sparking laughter from a Helena crowd.

And he said he was “bullish” on artificial intelligence, also called AI, adding he was using it every day.

Kashkari was in town as part of a visit to Montana to talk to businesses and other residents about the economy. His visit included a stop in Bozeman in which he said he talked with representatives from high-tech companies.

He also spoke about Montana and the economy and said the only way to solve the affordable housing crisis is to build more housing.

Thursday’s gathering at the Delta Hotel was sponsored by the Montana Chamber Foundation and attended by about 100 people and moderated by Larry Simkins of Montana, who spent six years on the Minneapolis board. Kashkari fielded questions for about an hour and then attended a reception in the hotel afterward.

His Ninth Federal Reserve District serves Minnesota, Montana, North and South Dakota, 26 counties in northwestern Wisconsin, and the Upper Peninsula of Michigan. It includes 9 million people.

Neel Kashkari, Federal Reserve Bank of Minneapolis president

Neel Kashkari, Federal Reserve Bank of Minneapolis president, left, speaks June 26, 2025, at a Montana Chamber of Commerce event in Helena as Lawrence Simkins looks on.

Kashkari said every time he visits Montana people are generally optimistic.

But he said the No. 1 challenge is housing.

“I think Montana has a lot going for it,” he said. “I think tourism is a bigger part of your economy here then it is in the other states that we cover.”

He said it is a strength but also a risk as in economic downturns people do not want to travel.

“Montana is very well positioned,” he said. “The only advice I would give you, that you already know, is the only solution to housing is more housing.

“That’s it, there is nothing else. There is no point in talking about anything else,” Kashkari said. “The only solution to housing affordability is more housing.”

Federal Reserve Bank of Minneapolis Ninth District

Federal Reserve Bank of Minneapolis Ninth District

He said it is a cultural challenge because people want to keep Montana the way they know it and don’t want to build more homes because more people will move here.

“What does that mean? Home prices will go up if you don’t do that,” Kashkari said. “So you have to build more housing. I think that is up to you to decide.”

He also discussed the U.S. economy and challenges it faces.

“I am not going to bet against the United States, we have our challenges and some of our challenges are self-made, but I would not trade places with any other advanced economy in the world," Kashkari said.

He said it was possible that China and Europe could get their “act together” and become really competitive.

“But I would still bet on America,” he said, adding “I still think we are far and away the most competitive major economy in the world.”

He said that means the dollar will be the preeminent currency for the foreseeable future.

Kashkari was asked his thoughts about cryptocurrency.

“Cryptocurrency is a joke,” he said. “It is basically (an instrument) of speculation. If you want to bet on it, be my guest. If you want to bet on Beanie Babies, bet on Beanie Babies.”

Kashkari said it was good for circumventing bank regulations.

Neel Kashkari

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, visits the Federal Reserve Bank's Helena branch on Thursday, June 26, 2025.

He was asked about AI and said he uses it every day, saying he finds it “critically useful and it’s only a couple years old.”

“That is a great contrast for me, one is actually useful technology that people are finding new ways of deploying every single day. So I am really bullish on AI. I am really excited about it."

He said he does not subscribe to the doomsday scenarios that “we’re all going to be out of jobs because of AI.”

Kashkari said the nature of jobs is going to change, but he is bullish that AI can continue to drive the productivity engine and help society become more successful.

He said the Fed is studying AI and “I am very optimistic.”

Kashkari joked that he hoped his “AI bros” would come to his defense from his “crypto bros.”

He was asked about President Donald Trump’s dislike for Fed Chair Jerome Powell and how that impacts the agency.

“It doesn’t,” he said. “We all believe deeply at the Fed that we should make decisions based on economic reasons not by anyone’s political pressure.”

Kashkari said politicians on both sides of the aisle have opinions.

“Our jobs are to focus on the data and analysis and make the best possible call we can for the economy,” he said, adding that includes not overreacting the other way.

He was asked about where the American economy would be in 10-20 years and if there was a chance for a manufacturing revitalization.

“We are really great at innovation,” he said. “We are so much better at innovation than any other advanced economy in the world.

“So, are we going to be manufacturing routine products? I doubt it,” he said. “So, whatever we sell is innovation-driven is the thing we excel at and we will continue to excel at.”

The Federal Reserve Bank of Minneapolis branch in downtown Helena.

The Federal Reserve Bank of Minneapolis branch in downtown Helena

He said Congress created the Federal Reserve in 1913 with the primary assignment, or dual mandate, of stable prices, with 2% inflation, and maximum employment with as many Americans working as possible.

He said sometimes you can figure those two things like a seesaw: if the economy gets hot and businesses have to struggle to find workers, the unemployment rate goes down and businesses pay big wages to keep their employees and then inflation goes up.

Kashkari said in that scenario the central bank would raise interest rates to cool the economy down.

But if the economy goes into a recession and unemployment goes up, then inflation goes down and the central bank would typically cut interest rates to boost the economy.

“That dual mandate is what we are trying to achieve, because that is what Congress has told us to achieve,” he said.

© 2025 the Independent Record (Helena, Mont.). Visit www.helenair.com. Distributed by Tribune Content Agency, LLC.