Minneapolis Fed President Neel Kashkari said yesterday, “my colleagues and I are going to do what we need to do to bring the economy back into balance… What I don’t know is how much are we going to need to do … if we get some help on the supply side, then we won’t have to do as much; if we don’t get any help on the supply side, we are going to have to do more.”
But he also cautioned, “if the recession is effective in bringing inflation down, but then you’re pushing the unemployment rate way up, now all of a sudden you might be moving from one type of imbalance to the opposite type of imbalance. Like any kind of system, you want to avoid over-correcting if you can.”
