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

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