Minneapolis Federal Reserve President Neel Kashkari said Wednesday in an interview with CNBC that the central bank may have to raise interest rates further if the economy does not slow as intended. However, he warned that if adverse growth scenarios occur, such as a government shutdown or auto strike, less may have to be done with monetary policy to bring inflation back to target.
Kashkari explained that the US economy has been surprisingly resilient. As for his forecast, he sees no change in rates in 2024. “Higher oil prices alone will not justify further rate hikes,” he added.
Market reaction
The Dollar Index rises 0.60% and is trading at 106.80, its highest level since November. EUR/USD broke below 1.0500 for the first time since January and USD/JPY is approaching 150.00.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
