New Eagle King Kashkari: US inflation has not peaked, the Fed will not stop raising interest rates
Financial Associated Press, October 7 (Publisher Zhao Hao) On Thursday (October 6) local time, Minneapolis Fed Chairman Neel Kashkari said the Fed has not completed the task of lowering the The end of the rate hike cycle is ” rather long off. “
“We still have a lot of work to do,” Kashkari said. “We are not ready to announce a pause until we have evidence that inflation has peaked and is expected to come back down. I think we are still a long way from a pause. Some distance.”
Last year, Kashkari was even a “dovice” among Fed officials and, in the eyes of the outside world, was the most “dove”. Following the same day Kashkari speech, some institutions released a dot chart of the Fed’s meeting on interest rates in September 2021.
The chart shows that at the time most officials still believed the central bank would not raise interest rates this year (2022) and even one thought that interest rates would remain close to 0% in 2023. The outside world believed that Kashkari had predicted it. .
However, since the beginning of the year, Kashkari’s position has taken a 180-degree turn, becoming more radical than most of his peers. While he does not have the right to vote for the FOMC this year, it has no effect on his “flying eagles”.
Kashkari stressed that the Fed’s current task is to reduce inflation to the highs of the past 40 years and will not be deterred by the financial market turmoil during the operation, because the Fed does not “escort” investors.
Kashkari expects the Fed to raise rates by an additional 125 basis points from current rates in the remaining two meetings this year. He recognized that the transition to higher interest rates would have an impact on global growth.
He explained: “While US commodity prices are up and down, underlying inflationary pressures – wages and services – tend to be stickier. We haven’t seen evidence that these things are moving in the right direction.”
