In a recent interview with Bloomberg TV, Minneapolis Fed President Neel Kashkari underscored Fed’s commitment to reining in inflation, stressing the importance of reducing the inflation rate to Fed’s target of 2% over a “reasonable period of time.”
However, he also candidly expressed that the exact measures required to achieve this goal are still uncertain, as the economic response will guide future actions.
“We have to get inflation back down to 2% over a reasonable period of time,” Kashkari stated, adding, “Ultimately, the economy will tell us how much is needed to get there. And I just don’t know.”
Kashkari’s remarks come at a time when the economy is displaying resilience in the face of aggressive monetary tightening, with economic indicators not showing signs of significant weakening. “I’m not seeing a lot of evidence that the economy is weakening,”
Despite Fed’s aggressive rate hikes aimed at cooling inflation, Kashkari emphasized that policymakers have not declared victory yet. The fight against inflation is ongoing, and Fed is prepared to implement additional tightening measures if they are deemed necessary.
