Fed’s Kashkari says should wait for inflation before raising rates

By Ann Saphir

(Reuters) – Minneapolis Federal Reserve Bank President Neel Kashkari, who this year has dissented three times in votes at the U.S. central bank’s policy meetings which raised rates despite low inflation, on Tuesday repeated his view that the labor market still shows signs of slack and could be improved.

“Why should we raise rates until we actually see inflationary pressures building?” Kashkari asked at a Lambda Alpha International meeting in Roseville, Minnesota.

He added that by his estimate, a million workers are sidelined and could return to the workforce if the job market continues to strengthen. “We are better off letting inflation come to us than preemptively cutting off the expansion by raising rates prematurely.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.