The US has a lot of borrowing capacity, government spending has been prudent – Neel Kashkari

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The United States has a lot of borrowing capacity and government spending in response to the coronavirus crisis has been prudent, it said Thursday. Minneapolis Federal Reserve Chairman Neel Kashkari, Reuters reported.

Featured statements

“Both parties recognize the value of an independent Fed.”

“I don’t think the debt capacity is unlimited; eventually, it will show up in inflation.”

“If higher government debt resulted in inflation, the Fed would have to hit the brakes, but I don’t see that in the immediate future.”

“In times of national crisis, it is better to be generous in fiscal aid.”

Market reaction

These comments were largely ignored by market participants and it was last seen that the US dollar index it lost 0.38% on the day at 92.07.

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