NEW YORK, Nov 7 (Reuters) – Minneapolis Federal Reserve President Neel Kashkari said the U.S. central bank still has work to do to control inflation, suggesting he favors a further rise in interest rates.
At the end of its monetary policy meeting last week, the Fed once again kept interest rates unchanged and analysts believe it will do the same in December. Its boss, Jerome Powell, indicated that no rate cut had been discussed, this question “not arising” at the moment.
“The economy is proving its resilience despite multiple rate increases over the past two years. This is good news,” Neel Kashkari said in an interview with Fox News, adding, however, that the inflation problem has “not been completely resolved.”
“We still have work ahead of us,” he said, while inflation is still far from the US central bank’s 2% target. Many market participants, however, believe that the Fed has completed the cycle of monetary tightening that began in March 2022, as inflationary pressures have eased.
“I’m a little nervous about declaring victory too soon,” said the head of the Minneapolis Fed, indicating that he wanted to have more data to decide on the course of action for the Fed. (Reporting Michael S. Derby; French version Jean Terzian)
2023-11-07 04:17:41
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