Fed’s Kashkari sees no need to hike rates with inflation low

Minneapolis Fed President Neel Kashkari speaks during an interview at Reuters in New York
Minneapolis Fed President Neel Kashkari speaks during an interview at Reuters in New York February 17, 2016. REUTERS/Brendan McDermid

January 15, 2019

(Reuters) – Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, on Tuesday repeated his view that the U.S. central bank should not raise interest rates as long as inflation remains low.

“There’s no need to snuff the economy before it really heats up,” Kashkari told the Rochester Area Chamber of Commerce, adding that while unemployment is a low 3.9 percent, wages are still growing slowly, suggesting to him that the labor market can still absorb new workers.

(Reporting by Ann Saphir; Editing by Chizu Nomiyama)

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