Summary
- Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said a flexible approach is needed for future interest-rate policy.
- Kashkari said inflation pressures would increase as the war drags on.
- Markets are focused on geopolitical risks, the duration of the war and the future path of inflation as key variables in monetary-policy decisions.
Forecast Trend Report by Period
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, emphasized the need for a flexible approach to future interest-rate policy. He also said a prolonged war could intensify inflation pressures.
Kashkari told CBS on May 3 that policymakers need to keep an open mind about the future path of rates.
He said it is difficult to lock in a policy path because the economic environment continues to change.
A longer war would add to inflation pressures, he said.
The comments reflect the impact that higher energy prices and supply-chain instability can have on inflation.
Markets are watching how geopolitical risks influence monetary-policy decisions. The path of inflation and whether the war continues are seen as key variables.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
