Fed's Kashkari: Fed moved too slowly in 2021 in tackling high inflation, 2023 rate cuts very unlikely

Federal Reserve's Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, is speaking and has said that the Fed moved too slowly in 2021 in tackling high inflation. 

He said wages are climbing and there is a risk that this goes into a wage-driven inflation story. he said the fed is laser-focused on getting inflation down.

He said concerning inflation is spreading and the Fed need to act with urgency. ''It is likely we raise rates and sit there, as 2023 rate cuts are a very unlikely scenario. 

He says a soft landing is possible but he does not know how likely. 

Key quotes

• Fed moved too slowly in 2021 in tackling high inflation.
• Inflation is dragging wages up rather than the other way around.
• Wages are climbing; risk this goes to a wage-driven inflation story.
• Concerning inflation is spreading; we need to act with urgency.
• We are laser-focused on getting inflation down. 
• Very unlikely scenario Fed will cut rates next year.  
• More likely scenario is we raise rates and then sit there.
• I am not sure what markets are looking at. 
• Where will eventually be a tradeoff between employment and inflation.
• Best data we have says inflation expectations are still anchored.
• Will probably take several years to get inflation back to 2%.
• In a supply-constrained world we still need to get inflation down to 2%.

US dollar remains in bullish territory

The US dollar has been changing hands between bulls and bears on Wednesday but held on to most of the previous day's gains over worries related to China and Us relations and  Federal Reserve officials' hints at aggressive rate hikes.