Minnesota Fed Chief Says CB Can Afford to be Patient

Count Minneapolis Fed President Neel Kashkari as being firmly in the camp of those who believe the central bank can afford patience on interest rates.

In a somewhat unusual post Tuesday on publishing platform Medium.com, Kashkari said the economy has not reached the point in terms of inflation and employment that would necessitate aggressive monetary policy.

As a result, he joined his fellow voting members on the Federal Open Market Committee last week in voting to hold rates steady.

Judging from his analysis, it could be a while before he changes his mind.

“From a risk management perspective, we have stronger tools to deal with high inflation than low inflation,” Kashkari wrote. “Looking at all this together led me to vote to keep rates steady.”

Fed officials don’t often post their thoughts on blogs.

They usually express their thinking first through the policy statements that emerge from FOMC meetings, then from scheduled, individual speeches they present at formal venues.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza