Fed's Kashkari in an interview with Reuters
Fed's Kashkari in an interview with Reuters (dove/non-voting) says:
- He is glad that the Fed is pausing, sees no reason to raise rates
- he would support a rate cut if he reached the conclusion that the US economy is really slowing
- he would need a few months of data before deciding if a rate cut is needed
- it is possible policy has become contractionary
- there is a cost of Fed's policy.
- Balance of risks shifted for his colleagues and for himself
- recession probability has increased but still not his baseline
- holding wide range of treasury maturities may avoid criticism that the Fed is subsidizing US government borrowing
- he is open-minded to changing Feds long-run strategy, but 1st needs to meet existing inflation target
