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.
