Minneapolis Fed President Neel Kashkari reiterated yesterday that he didn’t see the need to continue raising interest rates. And, he saw no signs of overheating while low wage growth suggests the labor market are more slack. He also pointed to slowdown in other major economies, in the context that Japan and Germany GDP contracted in Q3. He questioned “right now, the U.S. economy seems to be the strongest engine of the major economies around the world — is that going to last, especially if the Fed keeps raising rates? It’s hard to know.”
On the other hand, Atlanta Fed President Raphael Bostic maintained his support to keep raising interest rates to neutral, even though they “not too far”. He said “I don’t think we are too far from a neutral policy, and neutral is where we want to be”. And, “We may not be there quite yet, but I am inclined to think that a tentative approach as we proceed would be appropriate.”
