Fed’s Kashkari sees one more rate hike this year

Dhwani Mehta FXStreet

Minneapolis Federal Reserve Bank President, Neel Kashkari, said early Tuesday, “I am one of the fed policymakers who sees one more rate hike this year.“

Additional comments

Still more work to do on services inflation.

Fed can definitely get back to 2% inflation.

May need to cut rates if real rates are tightening.

US rates probably have to go a little bit higher, be held there for longer, to cool things off -- remarks made earlier on Monday and now posted on the Minneapolis Fed website.

Falling inflation next year might justify backing off Federal funds rate to stop if from getting tighter.

Balance sheet runoff will continue for the foreseeable future.

Effects of balance sheet runoff may not be fully felt yet.

If govt shutdown means we don't have access to usual data, we will supplement with the best private data that we can.

You always have to do your best with the best data available; i'm confident we'll be able to make decisions.

That the yield curve is un-inverting is not necessarily bad news, and it could be good news.

Market reaction

The US Dollar Index is seeing a fresh uptick on the above comments, currently trading at 106.01, modestly flat on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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