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MNI POLICY: Fed's Kashkari: No Reason Yet to Lift Rates

--Not At Maximum Employment Yet
By Jean Yung
     WASHINGTON (MNI) - The Federal Reserve might be "overdoing it" with its
interest rate increases as the economy has yet to reach full employment,
Minneapolis Fed President Neel Kashkari said Monday. 
     "I don't see any reason yet that we should be moving interest rates up and
tapping the brakes," he told a forum in Minnetonka, Minn. 
     Wage growth has picked up a bit on the back of tax cuts and increased
federal government spending but remains modest, a signal that the labor market
is not yet at maximum employment, he said. 
     "We've been wrong for the past couple of years," he added. "We keep saying
we're at maximum employment and then 200,000 people per month are coming out of
the woodwork and taking jobs." 
     Separately, the Fed is not yet seeing any impact of newly imposed trade
restrictions on investment and growth, he said. 
     Kashkari does not vote on interest rates this year. 
--MNI Washington Bureau; +1 202-371-2121; email:

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