Federal Reserve Bank of Minneapolis President Neel Kashkari revealed on Wednesday he will continue to support rate increases until core inflation begins to decline, estimating that interest rates hikes could likely be paused "sometime next year."
Speaking at the Q&A session hosted by Travelers Institute, Kashkari explained that changes to interest rates made by the Federal Reserve will take a year to impact the economy and that the danger of "undershooting" rate increases is "greater" than the risk of "overdoing them."
In his comments on the labor market, Kashkari emphasized that there are few signs of "seeing little evidence of a labor market softening," however, he warned that indicators point to the global economic slowdown. "I am fairly confident stagflation won't occur," Kashkari concluded.
