Minneapolis Fed chief sees moderate U.S. growth in 2016

The nation's economy is doing pretty well and will continue growing at a moderate rate this year, Federal Reserve Bank of Minneapolis President Neel Kashkari said Tuesday.

Consumers will spend more if oil prices stay low, giving the economy added lift, Kashkari told a Twin Cities business group during a speech in Bloomington.

"We're getting data all the time. Some data is a little bit optimistic. Some data is a little bit pessimistic," said Kashkari, who recently took over the Minneapolis Fed. "But I think (a) moderate economic outlook is still the base case for the U.S. That's better than a lot of the rest of the world."

Kashkari cautioned that things could change quickly. He cited the uncertainty about the future direction of China's weakened economy.

"There could be upside surprises," he said. "There could be downside surprises. I feel pretty good about how the U.S. is positioned. But we have to watch the data because there are always things that can surprise us."

He also announced that his first forum on banks that he says are too big to fail will be in April in Minneapolis. He has proposed that regulators consider breaking up big banks and taking other measures that critics say are radical.