Feds Kashkari: Fed won't raise rates preemptively
Kashkari speaks at the NY Economic Club
Minneapolis Fed president Neil Kashkari is speaking at the year at economic club. He tends to be more dovish.
He is saying that
- the real unemployment rate is 9.1%
- The Fed will not raise rates preemptively
- Expects inflation to rise in 2021, but the rise to be temporary
- he is confident the Fed can most inflation in the short term, but keep long-run inflation expectations anchored
- Biggest risk is the Covid variants
- the Fed would have to tap breaks if higher government debt resulted in inflation, but doesn't see that in the immediate future
- US has a lot of debt capacity
The comments are largely in line with the thoughts of the chair and other Fed members.