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Fed Could Potentially Pause Rate Hikes Next Year, Kashkari Says

  • Minneapolis Fed chief would first want core inflation to slow
  • Costs of doing too little on inflation greater danger for Fed
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Fed Officials Reiterate Aggressive Stance

Federal Reserve Bank of Minneapolis President Neel Kashkari said that the US central bank could potentially pause its interest-rate increases at some point next year if policymakers see clear evidence that core inflation is slowing.  

“My best guess right now is yes, do I think inflation is going to level out over the next few months, the services, the core inflation, and then that would position us some time next year to potentially pause,” Kashkari said Wednesday during a virtual event organized by the Travelers Institute.