Minneapolis Fed President Neel Kashkari, speaking to CNBC this Friday, said that there is a lot of uncertainty of around where the neutral is but we are close to neutral rates right now.
Key quotes:
“¢ Neutral is tough to know, that’s why we watch the data so closely.
“¢ I’m more worried that we’re raising rates prematurely.
“¢ I believe that if we were to raise rates dramatically, it would cause a recession.
“¢ Housing and autos are catching my attention and we know higher rates are having an effect.
“¢ On trade tensions, cites China is a big uncertainty.
“¢ Inflation expectations are very anchored.
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