Fed’s Kashkari Says Rates Likely on Hold for ‘Extended Period’
- Kashkari questions if rates are high enough to tame prices
- Resilient housing market may indicate neutral rate is higher
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Federal Reserve Bank of Minneapolis President Neel Kashkari said it’s likely the central bank will keep interest rates where they are “for an extended period of time” until officials are certain inflation is on track to their target.
In an essay published earlier Tuesday, the Minneapolis Fed chief said recent inflation data raise questions about whether monetary policy is restrictive enough to fully return price growth to 2%, the rate policymakers see as the sweet spot in a healthy economy.