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Fed's Kashkari Explains Dissent, Urges Balance-Sheet Plan

  • Minneapolis chief wants to announce balance sheet plan soon
  • Kashkari says inflation falling short of Fed’s 2 percent goal
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Fed's Kashkari Explains Dissent on Interest Rate Increase

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Federal Reserve Bank of Minneapolis President Neel Kashkari said little-changed economic data and his belief that job market slack remains pushed him to cast the lone dissent when the Federal Open Market Committee raised interest rates this week.

In an written explanation Friday, Kashkari said he would prefer the Fed publish a plan that explains how and when it will begin to normalize its balance sheet before hiking again, warning that financial conditions might tighten in response to that announcement. His comments come after Chair Janet Yellen said the Fed is actively discussing its balance sheet plans but has yet to make any decisions.