MNI BRIEF:Fed Hike Must Account For Soft Landing Risk-Kashkari

Minneapolis Federal Reserve President Neel Kashkari said Thursday he agrees with the FOMC's outlook for something like seven rate hikes this year while cautioning the pace must be driven by economic data and the need to avoid derailing the economic expansion.

“There’s a danger to overdoing it” and “I hope we can engineer a soft landing,” he said during an online talk. “I’ve penciled in in my forecast we’d have seven this year, but it’s really going to depend on the economic data,” he said, and the pace depends on worker shortages and the Fed's unanimous view inflation must return to target.

Strong job growth hasn’t been enough to rebuild supply chains and keep inflation in check and “we have to respond” to price gains that have been more persistent than expected, he said. Still, low 10-year Treasury yields signal expectations are in check and long-term growth prospects are modest, he said.