Fed's Kashkari expects higher inflation continuing over next few months
Reuters
Published Nov 14, 2021 05:39PM ET
Updated Nov 14, 2021 08:26PM ET
By Kanishka Singh
(Reuters) -Minneapolis Federal Reserve Bank President Neel Kashkari said on Sunday he expects higher inflation continuing over the next few months but warned that the U.S. central bank should not overreact to elevated inflation as it is likely to be temporary.
"The math suggests we're probably going to see somewhat higher readings over the next few months before they likely start to taper off," Kashkari told CBS News' "Face the Nation" in an interview on Sunday https://cbsn.ws/3wN0aj6.
"But my view is we also need to not overreact to some of these temporary factors, even though the pain is real," Kashkari said in the interview.
Kashkari on Tuesday said he expects more clarity on the economic outlook by the time the Fed ends its bond-buying program in mid-2022, and is keeping an "open mind" on the timing of any rate hikes to follow.
President Joe Biden's economic advisers defended his policies on Sunday amid rising inflation that they said was a global issue related to the COVID-19 pandemic, not a result of the administration's programs.
U.S. consumer prices rose 6.2% in October compared to a year earlier, the fastest annual rate in 31 years, driven by surges in the cost of gasoline and other goods.
When asked about Biden's pending decision on whether to reappoint Fed Chair Jerome Powell to another term, or choose Fed Governor Lael Brainard to succeed him, Kashkari said both were capable.
"Well, I think both Chair Powell and Gov. Brainard are outstanding, very seasoned, experienced monetary policy makers, and I think if either of them got the nod from President Biden, I think we would be in very good capable hands", Kashkari said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.