Minneapolis Fed President Kashkari (dove) speaking.
The Minneapolis Fed president Neal Kashkari (non-voting member and dove) is speaking:
- monetary policy has been to type during recovery
- too tight policy lead to slower than necessary recovery
- current low inflation expectations sap Fed's ability to respond to the next downturn
- unemployment rate has been giving a faulty signal, Fed has misread the labor market
- Fed must allow inflation to rise above 2% to demonstrate it is serious about its symmetric target
- Fed has not implemented current policy framework as designed
- he is skeptical that a price level target would deliver better results
- must evaluate framework for times of imperfect data
- policy has not provided the stimulus economy required
- policymakers will never have perfect economic data
- economy is doing well now
- inflation expectations appear anchored at about 1.7%
- labor market recovery has been slower than needed to be