Fed's Kashkari: Rates may be hiked if coronavirus impact is not that bad

Omkar Godbole FXStreet Contributor

Federal Reserve (Fed) may raise rates if the negative impact of coronavirus on the economy is not as bad as expected, Minneapolis Fed Bank President Neel Kashkari said on Thursday, according to Reuters.

The Fed cut rates by 50 basis points this week, signaling markets that it is willing to act with speed to support the economy and markets. Fed's action, however, won't fix broken supply chains or persuade people who are worried about being exposed to the virus to leave their homes, said Nathan Sheets, chief economist at PGIM Fixed Income, according to CNBC.

Key quotes by Kashkari

Erring on the side of taking out a little insurance is now prudent.

If the virus turns out really bad we may need to do more.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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