Fed's Kashkari: Fed should have waited to raise rates until inflation strengthened
|Minneapolis Federal Reserve President Neel Kashkari explained his decision to vote to keep the interest rates unchaned in an article, in which he argued that the Fed should have waited to raise rates until inflation strengthened.
Key quotes:
- Weakening inflation, despite tight labor market, caused him to dissent on rate hike decision
- Risk of not raising rates soon enough 'doesn't appear to be large'
- Fed may be erroneously forecasting increase in inflation
- Monetary policy is only somewhat accommodative
- Would have liked for Fed to announce a start date for trimming balance sheet
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