CNBC Excerpts: Federal Reserve Bank of Minneapolis President Neel Kashkari Speaks with CNBC’s “Squawk Box” Today

WHEN: Today, Monday, September 12th

WHERE: CNBC's "Squawk Box"

Following are excerpts from the unofficial transcript of a CNBC interview with Neel Kashkari, Federal Reserve Bank of Minneapolis President, on CNBC's "Squawk Box" (M-F, 6AM-9AM ET) today, Monday, September 12th. Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000550345, http://video.cnbc.com/gallery/?video=3000550348 and http://video.cnbc.com/gallery/?video=3000550346.

All references must be sourced to CNBC.

KASHKARI ON POLITICS NOT PLAYING A PART

I CAN TELL YOU, I SIT IN THE DELIBERATIONS, I AM PART OF THE DELIBERATIONS. POLITICS SIMPLY DOESN'T COME UP. WE LOOK AT THE ECONOMIC DATA, AND EVERYBODY AROUND THE TABLE, WE MAY HAVE DIFFERENT PERSPECTIVES ON POLICY, BUT EVERYONE AROUND THE TABLE IS COMMITTED TO ACHIEVING OUR DUEL MANDATE. AND POLITICS DOES NOT PLAY A PART. I CAN ASSURE YOU OF THAT.

KASHKARI ON MONETARY POLICY

WE ARE SEEING TRENDS ALL AROUND THE WORLD. LOW INTEREST RATES, LOW INFLATION, SLUGGISH RECOVERY AMONGST VIRTUALLY ALL THE ADVANCED ECONOMIES. AND I AM ASKING LIKE MANY PEOPLE ARE, WHY IS THAT? WHAT IS THE EXPLANATION? THE RULE OF THUMB WAS THE DEEPER THE RECESSION, THE STRONGER THE RECOVERY. YET WE'VE HAD THE WEAKEST RECOVERY SINCE THE GREAT DEPRESSION. AND SO, WHEN I LOOK AT IT, I THINK IT'S NOT RELATED TO MONETARY POLICY. IT'S THINGS LIKE DEMOGRAPHICS, THE SLOWING GROWTH OF THE WORKFORCE, THE AGING OF OUR SOCIETY, LACKLUSTER TECHNOLOGICAL INNOVATION AND PSYCHOLOGICAL SCARRING COMING OUT OF THE CRISIS.

KASHKARI ON NEGATIVE RATES

I UNDERSTAND WHEN PEOPLE LOOK AT NEGATIVE RATES AROUND THE WORLD, IT SEEMS AS THOUGH NEGATIVE RATES ARE SPOOKING PEOPLE AND IT COULD BE LEADING PEOPLE TO SAVE MONEY JUST BECAUSE THEY ARE FREAKED OUT BY WHY ARE MY INTEREST RATES NEGATIVE? BUT HAVING LOW RATES, I AM NOT SURE THAT IT IS THE EXACT SAME THING. AND I WOULD ALSO PUSH BACK AND SAY, WELL, IS THE SOLUTION RIGHT NOW, DO YOU REALLY THINK THAT RAISING INTEREST RATES IS GOING TO LEAD TO HIGHER INFLATION? THAT'S A CURIOUS ECONOMIC PRINCIPLE.

KASHKARI ON IMMIGRATION

JUST TAKE IMMIGRATION AS AN EXAMPLE. ONE OF THE HUGE SOURCES OF ECONOMIC GROWTH IS POPULATION GROWTH AND WORKFORCE GROWTH. SO MORE WORKERS AND MORE CONSUMERS TO BUY OUR GOODS. WELL, OUR WORKFORCE HAS BEEN SLOWING. IT'S NOT GROWING VERY QUICKLY BECAUSE OUR POPULATION IS AGING. NOW THIS IS HAPPENING NOT JUST IN AMERICA. AS YOU KNOW, IT'S HAPPENING IN EUROPE, IT'S HAPPENING IN JAPAN. ONE OF THE ADVANTAGES WE HAVE HAD IN AMERICA IS THAT IMMIGRANTS HAVE WANTED TO COME HERE. THAT'S A BOOST TO OUR WORKFORCE. THAT'S A BOOST TO OUR DEMAND HERE AT HOME. AND SO, IMMIGRATION REFORM ACTUALLY CAN BE A REAL SOURCE OF ECONOMIC GROWTH.

KASHKARI ON INFLATION

MY VIEW IS THERE DOESN'T APPEAR TO BE HUGE URGENCY TO DO ANYTHING, FRANKLY, AND LETS GET AS MUCH DATA AS WE CAN AND LET'S TRY TO GET OUR INFLATION BACK UP. AGAIN, LOOK AROUND THE WORLD. AROUND THE WORLD INFLATION GENERALLY IS COMING UP LOW. THIS IS A GLOBAL PHENOMENON, IT'S NOT JUST A U.S. PHENOMENON. AND THAT IS WHY I THINK WE NEED TO UNDERSTAND WHAT ARE THOSE DRIVERS. WHY ARE INTEREST RATES OVER THE LAST 30 YEARS, WHY HAVE THEY BEEN FALLING?

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