Fed's Kashkari: Fed should have waited to raise rates until inflation strengthened

Eren Sengezer FXStreet

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

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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