Kashkari Says Fed Concerns Over Inflation Based on ‘Ghost Story’
- Says central bank can wait for signs of wage, price pressures
- Dallas Fed chief Kaplan also said ‘I’m willing to be patient’
Federal Reserve Bank of Minneapolis President Neel Kashkari holds a moderated audience Q&A at the annual convention of the Independent Community Bankers of Minnesota in Minneapolis. (Source: Bloomberg)
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Federal Reserve Bank of Minneapolis President Neel Kashkari said his colleagues at the U.S. central bank have voted to raise interest rates because they are worried about accelerating inflation in the future, a concern he likened to a “ghost story.”
“People are worried that, if wages start to climb, if businesses have to compete with each other, you may not get gradual wage growth,” he said Friday during a talk in Bloomington, Minnesota. “You might all of a sudden get an acceleration in wages.”