Fed's Kashkari: Wanted stronger commitment to zero interest rates

Eren Sengezer FXStreet

Under the Federal Reserve's new forward guidance, there is still a possibility that rates could be raised before achieving goals, Minneapolis Federal Reserve President Neel Kashkari said on Friday. Kashkari further added that he wanted a stronger commitment to zero interest rates.

Additional takeaways

"Wanted Fed to vow to wait on rate hikes until core inflation is at 2% for roughly a year."

"Sustained core inflation at 2% would demonstrate the economy really is at full employment."

"It's hard to assess in real-time if the economy is at full employment, inflation set to rise."

Market reaction

These comments don't seem to be having a significant impact on the USD's performance against its major rivals. As of writing, the US Dollar Index was virtually unchanged on the day at 92.91.

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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