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Stocks are little changed following three-day slide for Dow, S&P 500

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Both the Dow and the S&P 500 declined for a third straight session Tuesday on thin trading volumes.

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"The big fear I have at the back of my mind is if we're wrong and markets are wrong, and that this inflation is much more embedded at a much higher level than we appreciate or markets appreciate," he said, commenting on market expectations of inflation coming back down to 2% within the next two years.

Kashkari also pointed towards supply-side shocks driving "half to two-thirds" of the nation's high inflation.

 

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