Fed's Kashkari: Monetary policy 'largely doing what it can' to support robust recovery -- RTRS
In his economic paper published on Monday, Minneapolis Federal Reserve Bank President Neel Kashkari argued that the most effective way to bolster US economic growth is through non-monetary policy approaches such as immigration and tax reforms, Reuters reports.
Key Quotes:
US labor market is "closer to normal" but that inflation is still below the Fed's 2-percent target and economic growth is well below precrisis norms.
"Monetary policy is largely doing what it can to support a robust recovery, and what remains are fiscal and regulatory policies"
"Another promising policy is immigration reform, especially for high-skilled workers"
"I am skeptical that a large-scale expansion of government spending by itself is the best way forward, since larger fiscal deficits will lead to higher expected future taxes, which could further undermine private sector confidence"
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
