Neel Kashkari, President of the Federal Reserve Bank of Minneapolis wrote a piece in the Financial Times.
(link, FT may be gated)
In brief:
- The global economy is slowing
- US business investment has stalled
- the yield curve, … has inverted - a quirk that preceded previous recessions
- How should monetary policy respond? The Federal Open Market Committee, of which I am a participant, will consider this question at our September meeting. Absent some surprise reversal in these economic developments, I will argue that we should not only cut the federal funds rate, but that we should also use forward guidance to provide even more of a boost to the economy than a rate cut alone can deliver.
More:
What would such guidance look like?
- At a minimum, we should commit to not raising rates again until core inflation returns to our 2 per cent target on a sustained basis.
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Kashkari tends to be more dovish than most on the FOMC.
