Federal Reserve official Neel Kashkari expresses caution about the current monetary policy, stating that the Fed will maintain rates if inflation data supports it. Kashkari acknowledges the possibility of another rate hike but emphasizes the need to assess inflation trends. He highlights the importance of understanding the economy's underlying demand to address inflation concerns and mentions the impact of higher US government debt on borrowing costs for achieving 2% inflation.
KASHKARI: BIG QUESTION IS HOW RESTRICTIVE POLICY IS RIGHT NOW https://t.co/fEOMagbZJU
Fed's Kashkari: With higher US government debt, it might take higher borrowing costs in the nearer term to achieve 2% inflation. https://t.co/dxYxjakZij
🔴 FED'S KASHKARI: WITH HIGHER US GOVERNMENT DEBT, IT MIGHT TAKE HIGHER BORROWING COSTS IN THE NEARER TERM TO ACHIEVE 2% INFLATION.