In an interview with CNBC on Monday, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, argued that the Fed should err on the side of more accommodation and said that he doesn’t know if the Fed is done cutting rates.
“The balance of risks is toward the downside right now,” Kashkari noted. “Until wage growth picks up, we’re not going to be at maximum employment.”
Kashkari’s dovish stance is well-know and the US Dollar Index largely ignored these comments. As of writing, the index was up 0.22% on the day at 97.33. Below are some additional quotes, per Reuters.
“On average monetary policy has been too tight throughout the US economic recovery.”
“The Fed should not raise rates prematurely.”
“The global economy, including Europe and China, are slowing and the US is not immune to that.”
“The Fed does not think negative interest rates are a tool it would want to use but does not rule out the possibility.”
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