Fed’s Kashkari says no reason to ‘tap brakes’ on U.S. economy

(Reuters) – Minneapolis Federal Reserve Bank President Neel Kashkari on Monday signaled he would continue to oppose raising U.S. interest rates until inflation shows signs of rising toward the Fed’s 2-percent goal.

“Because inflation is low, I am seeing no reason to tap the brakes on the economy,” Kashkari said in a Town Hall event at Winona State University in Minnesota and broadcast via the Minneapolis Fed’s website. “My perspective is let’s allow the job marker to continue to strengthen, allow more Americans to go back to work, allow wages to strengthen, and then if we start to see inflation creep back up to our 2-percent target, we can tap the brakes then.”

The Fed raised interest rates twice so far this year, and both times Kashkari dissented. U.S. central bankers are widely expected to raise interest rates again when they meet in December.

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