Fed's Kashkari: Fed won't raise rates preemptively
|Minneapolis Federal Reserve President Neel Kashkari reiterated on Thursday that the Fed will not be raising rates preemptively, as reported by Reuters.
Additional takeaways
"Headline unemployment rate understates slack; the real unemployment rate is 9.1%."
"We need to get as many people vaccinated as possible to prevent the 4th wave, keep recovery on track."
"This year we'll see inflation uptick but it will be temporary."
"Would not be surprised to see 2.5% inflation, maybe higher."
"Quite confident we can boost inflation in the short-term but keep long-run expectations anchored."
"The biggest risk to recovery are variants."
"Raising inflation target could undermine public trust in the Fed."
"At some point, when the pandemic is behind us, the Fed will shrink its big balance sheet, but will be bigger than in past."
Market reaction
The greenback continues to have a difficult time finding demand after these comments. As of writing, the US Dollar Index was down 0.38% on a daily basis at 92.07.
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