Fed's Kashkari: Monetary policy has been too tight during recovery

Author: Greg Michalowski | Category: Central Banks

Minneapolis Fed President Kashkari (dove) speaking.

The Minneapolis Fed president Neal Kashkari (non-voting member and dove) is speaking:

  • monetary policy has been to type during recovery
  • too tight policy lead to slower than necessary recovery
  • current low inflation expectations sap Fed's ability to respond to the next downturn
  • unemployment rate has been giving a faulty signal, Fed has misread the labor market
  • Fed must allow inflation to rise above 2% to demonstrate it is serious about its symmetric target
  • Fed has not implemented current policy framework as designed
  • he is skeptical that a price level target would deliver better results
  • must evaluate framework for times of imperfect data
  • policy has not  provided the stimulus economy required
  • policymakers will never have perfect economic data
  • economy is doing well now
  • inflation expectations appear anchored at about 1.7%
  • labor market recovery has been slower than needed to be
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