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
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose