Kashkari Says Fed Shouldn’t Overreact to ‘Temporary’ Inflation
- Overreacting could lead to worse long-term outcomes: Kashkari
- Minneapolis Fed chief speaks Monday in Bloomberg TV interview
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The Federal Reserve shouldn’t overreact to inflationary pressures that are likely to prove temporary, Federal Reserve Bank of Minneapolis President Neel Kashkari said.
“We shouldn’t overreact to what is likely going to be a temporary factor,” Kashkari said Monday in a Bloomberg Television interview with Kathleen Hays. “If we overreact by saying, ‘Let’s just change the path of monetary policy to try to deal with a one-time effect,’ that could lead to a worse long-term outcome for the economy.”