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Feds Kashkari: how high rates need to go depends on supply side
Abstract：(Reuters) – How much higher the Federal Reserve will need to raise U.S. interest rates will depend in large part on how quickly supply chains can recover, Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday.
Reuters – How much higher the Federal Reserve will need to raise U.S. interest rates will depend in large part on how quickly supply chains can recover, Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday.
Russia‘s war in Ukraine and China’s COVID19 lockdowns are tangling supply chains that at the beginning of this year were just starting to ease, Kashkari said at Lake Superior University. The Fed has indicated it will get interest rates to a neutral level – usually estimated at around 2.5 – by the end of the year if the Fed gets help from the supply side, the Fed “wont have to do as much” beyond that, but if not, it will need to do more, Kashkari said.
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