Interest rate message from Minneapolis Fed President
Minneapolis Fed President Neel Kashkari said interest rates should remain steady for a “longer” time.
Minneapolis Fed President Neel Kashkari said lowering borrowing costs before inflation is under control would put the foundations of U.S. prosperity at risk, and stated that interest rates should remain steady for a “long” time.
Kashkari said in a broadcast he attended, “The economy in the United States is quite strong, the labor market is strong, inflation is falling and many people are deeply unhappy with the state of the economy. I think this is due to the high inflation they are experiencing.”
While the Fed is expected to keep interest rates in the range of 5.25 to 5.5 percent, the highest level in 23 years, rate setters say they want more evidence that inflation is on track to reach its 2 percent target.
“My best guess right now is that we’re going to keep interest rates here for a long time until we get more data that will convince us one way or another that inflation is actually on the path to decline,” Kashkari said.