Lates News

Minneapolis Fed President Neel Kashkari said on Wednesday that the Federal Reserve must focus on containing the mounting inflation risks but it is currently "far from" predicting the timing of the next interest rate adjustment. Kashkari also mentioned that the "inflation shockwave" caused by the Middle East war may continue to exist and this concern is gradually being reflected in the bond market. When discussing the impact of the Middle East war on the US economy, Kashkari stated that compared to the risk of deteriorating labor market conditions, inflation risks seem to be greater at the moment, but he also emphasized that the Fed "must pay attention to both at the same time." Kashkari previously supported the Fed's decision to maintain interest rates in April, but he was also one of the officials who opposed continuing to retain the dovish forward guidance. He suggested that the Fed should adopt a "neutral guidance" approach, meaning future rates will depend on subsequent data performance. He said, "Since that dissent - it's been a few weeks now - I think most of the data shows that inflation risks are rising rather than falling." When asked if he still supports using neutral rather than hawkish language, he said, "I think so at the moment." However, he also stated, "I believe it is far from the time for me to predict the timing of the next step."