Interest Rates Will Be Higher for Longer, Fed’s Kashkari Says
Resilient economic growth and persistent inflation argue for holding interest rates at their current level for the foreseeable future, Federal Reserve Bank of Minneapolis President Neel Kashkari said Tuesday. As many consumers and businesses have debt locked in at low interest rates, it might take longer for the Federal Reserve’s restrictive monetary policy to have an impact on the real economy this cycle, he said while speaking at the Milken Institute Global Conference. Kashkari’s remarks on Tuesday echo his tone at a public event in early April, before the latest batch of inflation and economic data and last week’s meeting of the Federal Open Market Committee.
