Fed’s Kashkari says inflation fight takes priority as labor market is 'in decent shape'
Minneapolis Federal Reserve President Neel Kashkari emphasized that controlling inflation is his top priority, despite the labor market being in decent shape. He noted that inflation has exceeded the Federal Reserve's 2% target for over five years. Kashkari warned that prolonged high inflation could lead to unanchored inflation expectations, necessitating a more aggressive response from the Fed.
- ▪Neel Kashkari stated that inflation control takes precedence over labor market concerns.
- ▪Inflation has been above the Federal Reserve's 2% target for more than five years.
- ▪The current U.S. headline inflation rate is 3.8% as of April.
Opening excerpt (first ~120 words) tap to expand
Minneapolis Federal Reserve President Neel Kashkari said Thursday that his priority is to bring down inflation in the U.S. over the labor market, calling the rise in consumer prices "too high." Speaking to CNBC's Kaori Enjoji at the Bank of Japan-IMES Conference, Kashkari said that the U.S. central bank would take a "balanced approach" to its dual mandate of price stability and full employment. However, he pointed out that inflation has run above the Federal Reserve's 2% target for more than five years, while the labor market is in "decent shape" right now. "I am focusing heavily on inflation. I'm not ignoring at all the labor market.
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