Fed's Kashkari: Fed's policy tightening has led to low inflation

Eren Sengezer FXStreet

Key highlights (via LiveSquawk) from the essay titled "My Take on Inflation" by Minneapolis Fed President Neel Kashkari:

Fed's policy tightening has led to low inflation
Fed should proceed with caution before tightening policy further
Prefers Fed not raise rates until core PCE inflation reaches 2%
Job growth, wage growth, inflation weaker than would have been had Fed not raised rates
Labor market slack, falling inflation expectations are causing persistently low inflation
Allowing inflation expectations to slip give Fed less room to respond to future economic downturn

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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