Free Trial

MNI BRIEF: Fed's Kashkari Favors Wait And See Policy Approach

(MNI) WASHINGTON

“We probably need to sit here for a while longer," says Minneapolis Fed President.

The Federal Reserve should keep monetary policy on hold for now given uncertainty about how tight policy actually is and against a backdrop of inflation that has fallen from its peaks but is still too high, Minneapolis Fed President Neel Kashkari said Wednesday.

“We probably need to sit here for a while longer until we figure out where underlying inflation is headed before we jump to any conclusions,” Kashkari said during a fireside chat in North Dakota. “The big question on my mind is how restrictive is policy now? It seems like there’s more resilience in the economy than I had expected.” (See MNI INTERVIEW: Demand Boom Keeps Fed Patient For Longer-Koenig)

120 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Federal Reserve should keep monetary policy on hold for now given uncertainty about how tight policy actually is and against a backdrop of inflation that has fallen from its peaks but is still too high, Minneapolis Fed President Neel Kashkari said Wednesday.

“We probably need to sit here for a while longer until we figure out where underlying inflation is headed before we jump to any conclusions,” Kashkari said during a fireside chat in North Dakota. “The big question on my mind is how restrictive is policy now? It seems like there’s more resilience in the economy than I had expected.” (See MNI INTERVIEW: Demand Boom Keeps Fed Patient For Longer-Koenig)