Fed's Kashkari: Expects two rate hikes in 2022, warns about costs of high inflation
|In a post on Medium, Minneapolis Fed President and 2022 voting FOMC member Neil Kashkari said on Monday that he now sees two rate hikes in 2022. That is a switch from his previous forecast for now rate hikes until 2024, he said in the post. He warned in the post that the costs of ending up in a high-inflation regime outweigh the costs of ending up in a low-inflation regime. He expects the threshold for first-rate hikes to be met after the April economic data is released, indicating his potential support for a May rate hike.
Market Reaction
Despite Kashkari, who will be a policy voter in 2022, being known as one of the most dovish Fed members, his "hawkish shift" has not impacted FX markets.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.