Minneapolis Fed’s Kashkari Says Rates Should Rise Immediately to Curb Inflation
JH Kim
Summary
- Walter Bloomberg reported that Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said the Fed needs an immediate interest-rate increase to contain inflation.
- Kashkari was one of three officials who opposed last week’s decision to leave rates unchanged and supported a 25-basis-point rate increase.
- He said a delayed response could lead to entrenched inflation, forcing the Fed into more aggressive tightening.
Forecast Trend Report by Period
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said the Federal Reserve should raise interest rates immediately to contain inflation, Walter Bloomberg reported on Aug. 5.
Kashkari was one of three Fed officials who dissented from last week’s decision to leave rates unchanged. He supported a 25-basis-point increase.
The longer the Fed waits to respond, the greater the risk that inflation becomes entrenched, he said. That could force the central bank into more aggressive tightening later.
JH Kim
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