Economics

It’s Not Clear If Fed Will Have to Induce a Recession to Control Inflation, Official Says

  • Fed’s most dovish official says ‘it’s easy to be a hawk’ now
  • Central bank may face trade-offs, Minneapolis Fed chief says

Neel Kashkari, president and chief executive officer of the Federal Reserve Bank of Minneapolis

Photographer: Bloomberg/Bloomberg
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The Federal Reserve official who has long been the central bank’s most dovish policy maker said it’s an open question whether he and his colleagues will have to induce a recession to bring inflation down.

“My colleagues and I are going to do what we need to do to bring the economy back into balance,” Minneapolis Fed President Neel Kashkari said Tuesday during a town hall event in Sault Ste. Marie, Michigan.