Fed’s Kashkari: I supported rate hike this week

Comments from Kashkari in a moderated Q&A

  • Still ‘a way to go’ before to go full employment
  • I would have raised rates if I was sitting in the Fed chair, because we said we would hike
  • I don’t think the data itself supports rate hikes
  • I brought some of my dots forward because there is more stimulus
  • It’s unclear if all this stimulus will change the trajectory over the long term and that’s the big question
  • I don’t see wages rising enough to make a difference
  • Once businesses start raising wages to attract workers, then there will be inflation
  • Monetary policy is probably pretty close to neutral right now

Kashkari dissented previously but doesn’t currently have a vote

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