Fed's Kashkari: U.S. has to deal with rising fiscal deficit over the longer term

Reuters is reporting additional headlines from Minneapolis Fed President Neel Kashkari.

Slow pace of U.S. economic recovery is due to psychological scarring from crisis and recession.

High asset prices in part due to markets pricing in low neutral rate.

U.S. has to deal with rising fiscal deficit over the longer term.

Would be surprised if there was a sudden boost to productivity growth.

The bond market is telling Fed the neutral rate is lower than in the past.