Fed’s Kashkari says far too soon to predict what the next policy move should be
- Fed should have neutral policy outlook going forward
- Risk to US inflation is now higher than risk of labour market deterioration
- That said, need to still pay attention to both risks
- Most US data released since April has shown inflationary risks are higher, not lower
- Inflationary shockwave sent across the globe from the Middle East war could persist
- Concern over global inflation is working its way into the bond market
- Far too soon to make such a prediction about when the next move would be (when asked about October odds)
- I want to see what happens in US-Iran negotiations and see how global supply chains are responding
- Confident that Fed policymakers will vote based on their own reading of the economy and what’s appropriate
- “It’s going to be the best ideas ultimately that persuade the committee"
More to come..
This article was written by Justin Low at investinglive.com.