Fed's Kaplan Ties Next Hike to Inflation as Kashkari Chides FOMC
- Dallas Fed’s Kaplan voted for rate hike on Wednesday
- FOMC repeating mistakes of 1970s, Minneapolis Fed chief says
The Marriner S. Eccles Federal Reserve Building in Washington, D.C.
Photographer: Joshua Roberts/BloombergThis article is for subscribers only.
The Federal Reserve should not raise interest rates again without confidence inflation is heading toward its 2 percent target, said Dallas Fed President Robert Kaplan, while Minneapolis’s Neel Kashkari said he opposed the central bank’s decision to hike this week because of recent softening in price pressures.
Their comments were the first public remarks by U.S. central bankers following Fed Chair Janet Yellen’s press conference on Wednesday to explain the Federal Open Market Committee’s decision to raise rates for the second time this year. Kaplan voted for the rate rise while Kashkari dissented, as he did against the Fed’s hike in March.