Minneapolis Fed President Neel Kashkari said in an essay that he supported Fed’s decision to increase the speed of tapering back in December FOMC meeting. Also, it brought forward two rate hikes into 2022 because “inflation has been higher and more persistent than I had expected.”
Kashkari added, he’d prefer the forward guidance to commit to keeping federal funds rate at effective lower bound “until 12-month core PCE had exceeded 2 percent for 12 months.” Based on this criteria, “the test that I preferred will likely be met when the April 2022 data are released the following month”. The “threshold” (not trigger) for lift off would then be met.
