A Hot Labor Market Signals More Hikes Needed, Fed’s Kashkari Says
- Little evidence of rate increases affecting labor market
- FOMC needs to do more to get labor market into balance
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Federal Reserve Bank of Minneapolis President Neel Kashkari said interest rates will need to rise higher to combat the wage growth that is helping keep some elements of US inflation elevated.
On inflation “there are some hopeful signs,” Kashkari said Wednesday in a question-and-answer session at the Boston Economic Club. “There’s not yet much evidence, in my judgment, that the rate hikes that we’ve done so far are having much affect on the labor market. We need to bring the labor market into balance so that tells me we need to do more.”