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Kashkari: Still Not Clear If Need To Do Than Hiking To Neutral

FED

Minneapolis Fed’s Kashkari (’23 voter) broadly keeps to previous comments although this time doesn’t say he thinks rates will “probably” need to go “moderately above” neutral. Little reaction to date from FOMC-dated Fed Funds futures, which have picked up strongly through the day amidst risk-on sentiment (54bp for Jun, 105bp for Jul and 198bp for Dec).

  • *KASHKARI: FED HAS SIGNALED WILL HIKE RATES TO NEUTRAL THIS YEAR - bbg
  • *KASHKARI: NOT CLEAR YET IF FED NEEDS TO DO EVEN MORE ON RATES – bbg

Adds

  • *KASHKARI: DON’T KNOW YET IF FED ACTION WILL TRIGGER RECESSION - bbg

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