Fed's Kashkari says the Federal Reserve has powerful tools if inflation surprises higher

Author: Eamonn Sheridan | Category: Central Banks

Neel Kashkari is head of the Federal Reserve branch in Minneapolis, speaking in an interview with CNN 

  •  says Fed doesn't want to cut off recovery prematurely
  • says if raise taxes to pay for new spending, that won't be inflationary
  • not concerned that fiscal packages so far will create inflation
  • once the labour market is recovered, inflation back to target, will normalize monetary policy
  • full employment may take a few years 

The Fed's "powerful tools" are interest rate hikes. Kashkari is a renowned dove, he is not indicating hikes any time soon. 

Neel Kashkari is head of the Federal Reserve branch in Minneapolis, speaking in an interview with CNN 

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