Minneapolis Fed President Neel Kashkari said he’s “not concerned” about the massive fiscal stimulus response to the pandemic as “this is like wartime spending”. The US has the “capacity to do what we need to do” with more government borrowing.
“The key now is for the Federal Reserve to keep our foot on the monetary policy gas until we really have achieved maximum employment as we call it,” Kashkari added. “And I think it’s going to be important for Congress to continue to be aggressive supporting people who have been laid off, supporting small businesses until we really get the pandemic behind us and restore the economy.”
