2023-05-22 14:41:38
Minneapolis Fed President Neel Kashkari said he had a “50/50” decision at next month’s Federal Open Market Committee (FOMC) meeting on whether to raise rates further or not. The FOMC is watching the inflation outlook closely.
In an interview with CNBC on the 22nd, Kashkari said, “At this stage, it’s a 50/50 decision on whether to raise rates further at the June meeting or not. I think it’s better not to suggest that he did.”
He added: “If we don’t raise rates in June, it doesn’t mean the tightening cycle is over. I take it as a sign that we’re trying to get more information. And then we could start raising rates again in July.” continued.
The FOMC has been aggressive in raising interest rates for the past 14 months. The target range for the Federal Funds (FF) rate was raised from near zero to 5-5.25%. The FOMC has slowed its pace of rate hikes to 0.25 percentage points for three consecutive meetings this year. Some officials have indicated they would support a pause in rate hikes at the FOMC meeting on June 13-14.
Governor Kashkari
Photographer : Andrew Harrer / Bloomberg
Original title:Fed’s Kashkari Says a June Rate Pause or Hike Is a ‘Close Call’(excerpt)
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