Fed’s inflation forecasts have been wrong – FOMC’s N.Kashkari

Neal Kashkari (voter, dovish), President of the Minneapolis Fed, said today that the Fed’s inflation forecasts have been wrong for 5-6 years. He added that inflation expectations remain very well anchored and that there is not a threat of high inflation in the very near term.

Kashkari stressed that the Fed should tighten when data really calls for it, while US labour market still has slack.

He said markets need information on the Fed balance sheet plan, while he added there is no need to rush the process of shrinking the balance sheet.