The Federal Reserve should continue hiking interest rates at its next few meetings at a minimum until it is sure that inflation has peaked, Minneapolis Fed President Neel Kashkari said on…
, Minneapolis Fed President Neel Kashkari said on Wednesday, as he set out his own forecast that the policy rate should initially pause at 5.4%.
to combat high inflation, is eyeing a stopping point in its current tightening cycle in the spring of this year. Its main policy rate currently sits in a target range of 4.25% to 4.50%. rate-setters still focused on controlling the pace of price increases amid worries of any “misperception” in financial markets that their resolve to fight inflation was in any way flagging.Kashkari’s forecast of 5.
He also cautioned that the road would likely be bumpy and indicated a bias to overshooting rather than undershooting on bringing inflation down. Fed Chair Jerome Powell has also made plain that the central bank expects to hold rates at a high level for an unspecified period of time and has pushed back against expectations for rate cuts this year.
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