- Minneapolis Fed President Kashkari says he advocated for a 50-basis-point rate cut at FOMC meeting
Market news
21 June 2019
Minneapolis Fed President Kashkari says he advocated for a 50-basis-point rate cut at FOMC meeting
- Says aggressive policy action is required to re-anchor inflation expectations at Fed's target
- Estimates that long-run inflation expectations are currently around 1.7 percent
- Believes the Committee should now take action to re-anchor expectations at 2 percent
- Does not believe a rate cut or two in isolation will do much to boost inflation expectations
- Thinks the Fed should also commit to not raising rates from the new lower level until we see core inflation sustainably reach our target
- Says the Committee has consistently been too optimistic in forecasting inflation returning to 2 percent
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