Fed's Kashkari says he would probably support October cut
Kashkari comments to CNBC:
I get antsy when a super-dove like Kashkari is only saying he will 'probably' support a cut and it's 65% priced into the market.
- We should put yield curve control into our toolbox
- Balance sheet growth should not be confused with QE, which was designed to move down long-term rates
- We have to figure out what is the right growth rate of our balance sheet that isn't about stimulating the economy
- Would probably be in favor if Fed decided on October rate cut
- Over the long term, we still have evidence that the economy will grow at around 2% and we're drifting back to that level