The president of the Bank of the Federal Reserve from Minneapolis, Neel Kashkaricele, blasted the recent decline in inflation, although he noted that the central bank has not yet reached its goal.
“We’re not there yet, but we have made a lot of progress in terms of inflation, Kashkari said Tuesday at an event in Mankato, Minnesota. “If we think we’re going to continue what we’ve experienced, “we are on track to return to our 2% target, he continued, pointing out that the three- and six-month inflation measures are “basically” 2%.
In the context of a strong labor market, Kashkari stated that it “looks very promising” for the United States to avoid a recession this year. As such, he highlighted the risk of geopolitical turbulence in the global and national economies.
Biden blamed “corporate greed” for inflation in the United States
“We hit the brakes.”
In an essay published Monday, Kashkari said policymakers have time to evaluate the data reported before starting to lower interest rates, citing economic changes after the pandemic.
“We continue to brake, but there is an increase in supply in our economy, he stated, pointing out that most of the improvements made in inflation are derived from supply dynamics.
Feeding officers have kept interest unchanged since July and signaled that the central bank’s next move is likely to be a cut. Several officials, including Chairman Jerome Powell, have indicated they are in no rush to do so, helping to shift market expectations about the timing of the first rate cut in May or June.
Kashkari describes himself as “more hawkish” than his colleagues.
Powell said twice last week that he does not believe that the authorities will reach the required level, trusting the trajectory of inflation to lower rates at its March meeting.