Minneapolis Fed president, Neel Kashkari, speaks to WSJ in an interview
- Comfortable with where the FOMC seems to be heading
- But does not believe Fed needs to raise rates until 2024
- The job market still has a long way to go before healing
- Once supply chain issues are resolved, worried that Fed will have to deal with same forces that have pinned down inflation before the pandemic
- Wants to see broader measures of wages increasing to start believing that the labour market is getting tighter
- Full interview (may be gated)
His remarks on tapering fits with what the Fed is priming for before year-end but his timeline on rates is arguably leaning more towards the dovish side, all things considered.
He is still arguing that rising inflation pressures are largely transient in nature and while that may be true, the persistently high costs/prices is surely still something that they have to address eventually especially if supply chain issues are going to take much longer to work themselves out.
