Federal Reserve Bank of Minneapolis President Neel Kashkari reiterated Monday that he believes raising rates right now is a bad idea.
“The Fed should be under no pressure to raise rates. We have time to let inflation climb back to target,” Kashkari said.
Kashkari spoke during an appearance at the University of North Dakota. The official is a voting member of the interest-rate setting Federal Open Market Committee, which met last week and maintained its short-term interest rate target at 1% and 1.25%. It also announced the start of a long-touted program to allow its $4.5 trillion balance sheet to start shrinking.
Kashkari has voted against the Fed’s two rate rises this year, believing they are unjustified in light of unexpectedly weak inflation that’s fallen well short of the Fed’s 2% price rise target. “When I look at the economy, I don’t see any signs the economy is close to overheating,” Kashkari said Monday. “I see no need to tap the brakes” and attempt to moderate the economy with higher short-term rates.
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