Minneapolis Fed President Neel Kashkari has yet to decide whether to support a faster pace of rate hikes at this month’s FOMC meeting. There are signs that inflation is not slowing as much as we would like.
Kashkari attended an event in Sioux Falls, South Dakota on Thursday. When asked about it, he said he was “open-minded at the moment about whether it’s 25 basis points (bp, 1bp = 0.01%) or 50bp.” “For me, what the Fed’s interest rate forecast distribution (dotplot) suggests is far more important than whether it’s 25 basis points or 50 basis points,” he added.
“It is worrisome that there are still not many signs that the rate hikes are leading to a slowdown in the services sector,” he said. “Wage growth is actually too high to be consistent with the authorities’ 2% inflation target,” he said.
news-rsf-original-reference paywall">Original title:Fed’s Kashkari Open-Minded on Quarter- or Half-Point March Hike(excerpt)
