An article in the Wall Street Journal (gated), written by Fed insider Nick Timiraos re comments from Federal Reserve Bank of Minneapolis President Neel Kashkari
Main points:
- “I’m open to the idea that we can move a little bit more slowly from here,”
- “I would object to any kind of declaration that we’re done. If the committee chooses to skip a meeting because we want to get more information, I could make the argument why that makes sense,”
- “A skip to get more information is very different in my mind than [saying], ‘Hey, we think we’re done.’”
Kashkari cited the delayed impact of the Fed’s rapid rate increases already, and also and to a potential credit crunch from higher bank-funding costs that resulted from the failure of three midsize lenders since March. Also acknowledged inflation was slowing, “it does seem to be coming down,” ... “It is at least not getting worse. And then you add the uncertainties about the banking sector, and are the stresses really behind us? Are there more stresses yet to emerge? I think that does give us some reason to say, ‘Hey, let’s go a little bit slower.’”
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The next Federal Open Market Committee (FOMC) meeting is June 13-14
