Fed's Kashkari backs sentiment that policymakers can take their time cutting interest rates
Publishing timestamp: 2024-02-05 11:54:29
Summary
The article discusses Minneapolis Federal Reserve President Neel Kashkari's view that Fed policy is not as restrictive on growth as it appears on the surface. Kashkari argues that interest rates running at their highest levels in about 23 years are not hurting the economy and could buy policymakers more time before deciding whether to cut rates. He suggests that the longer-run "neutral" rate is probably higher than before the Covid-19 pandemic, meaning nominal rates could hold higher for longer without harming the economy. Kashkari's comments align with those of Federal Reserve Chair Jerome Powell, who also believes that the negative effects of rate hikes have not materialized. The article highlights the importance of these views as the Fed contemplates when and how much to cut rates to return to a neutral setting.
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Keywords: prices, breaking news, business news, interest rates, markets, inflation, jerome powell, u.s. 10 year tips, breaking news: economy, federal reserve bank, personnel, central banking, economy, neel kashkari,