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.
Author
Joel Frank
Independent Analyst
Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset
