Fed's Kashkari (2026 voter, Hawkish, statement dissenter) says he urged the Fed to signal hike risks in outlook; warns Hormuz closure may force Fed rate hikes
Important
SourceNewsquawk
SectionFed
- Prior to war had seen inflation likely to decline and warrant another rate cut this year; situation had not changed enough in March to modify the policy statement.
- A large enough price shock could put inflation expectations at risk, potentially requiring a series of rate increases for the Fed to keep credibility in defending its 2% inflation target.
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Via Minneapolis Fed