Minneapolis Fed Chief Signals Possibility of Interest Rate Hike
CryptoNewsTerminal Staff28 May, 2024
Minneapolis Fed Chief Signals Possibility of Interest Rate Hike
Minneapolis Federal Reserve Bank President Neel Kashkari has indicated that he doesn't rule out the possibility of raising interest rates. According to a recent newswire report, Kashkari cited the ongoing tightness in the U.S. labor market and above-target wage gains as factors influencing his stance. He noted that the labor market remains strong, with unemployment near historic lows and businesses struggling to find qualified workers. Additionally, wage growth has outpaced the Fed's target inflation rate of 2%, which raises concerns about the potential for inflation to become entrenched. Kashkari emphasized the Fed's commitment to ensuring price stability and maintaining a healthy economy. The central bank has been gradually raising interest rates in an effort to cool inflation without stifling growth. Kashkari's comments suggest that the Fed may consider further rate hikes if economic conditions warrant.
