Fed's Kashkari: 'Now is the time to start slowly moving' rates up
Fed's Kashkari says 'now is the time to start slowly moving' rates up
Minneapolis Fed President Neel Kashkari told CNBC that the central bank should begin gradually raising interest rates to combat inflation, suggesting a possible start in September. He was among three dissenters at last week's FOMC meeting, where the majority voted to hold rates steady. Kashkari argued that current policy is not restrictive enough, citing strong corporate earnings and a resilient consumer. He emphasized the need for small steps now to avoid aggressive hikes later.
I would rather get going now in small steps than wait till later, then we have a really entrenched inflation problem and have to raise rates aggressively.
- sco1
> Corporate earnings are through the roof. They’re doing great. The consumer is hanging in there. The labor market is hanging in there.
Are we though?
Thank god corporate profits are ok...
- arjie
It was a bit of a surprise they didn't already do it. Most people expect rates to go up at the next FOMC. Inflation is moving up, mostly due to the Iran War related oil crisis.
- Molitor5901
Rates up, rates down, I'm so confused. Too much liquidity supposedly means inflation, too little liquidity means deflation. Would not lower rates mean more consumer spending, thereby injecting more spending and fluidity in the system?
I can't help but shake the feeling that the federal reserve is here for the wealthy, the bankers, and not for the rest of us, and anything they do is ultimately not for our benefit, but for theirs.
- treebeard901
Yen carry trade unwind, inflation in Japan, hit to the NASDAQ, AI bubble pops, Japanese investors pull money back home and Treasuries lose its largest foreign creditor. Who knows what happens next.
- brcmthrowaway
I feel the mortgage rates are a bit too high now. Anyone else?