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.