Minneapolis Fed President Neel Kashkari noted that Fed “officially have a symmetric target” on inflation. Actual inflation has “averaged around 1.7%” for the past seven years, which was below the 2% target. Therefore, “if we were at 2.3% for several years that shouldn’t be concerning.” He also emphasized that “we should really live the symmetric target and not tap the brakes prematurely.” Thus, “this is why I’ve been arguing for more accommodative monetary policy.
Kashkari also said he’s “concerned” with yield curve inversion. However, he added: “I don’t necessarily believe it causes recessions but i believe it’s giving feedback that monetary policy is close to neutral today. We don’t want contractionary monetary policy unless we have good reason. We should be careful not to end the expansion.”
