The Minneapolis Fed President said the need to see wages and prices accelerated
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The United States Minneapolis Federal Reserve Bank President Cash Kari (Neel Kashkari) said on Monday that he needs to be more convinced that wages and prices are rising, will support the further tightening of monetary policy. Cash Kari voted against interest rates last year.
According to a recent Reuters analysis, the increase in wages in several States last year was greater than at any time in the past few years. A government report on Friday also showed that January paid the biggest increase in more than eight years.
But for Kashkari, it is not enough; he had no right to vote this year on monetary policy, but in the U.S. Federal Reserve Board (fed /FED) the meeting.
"I want to see inflation back to our 2% target level and hope to see salary growth," Cash Kari said in an interview with Peng Bo TV.
The growth of economic growth and inflation may be pushing up the long - term yield, expanding the gap between long-term and short-term returns, leading to a steepening of the yield curve.
This is good news, Cash Kari said, and provides more room for the fed to raise interest rates if necessary. He also said that his business acquaintances surprised him about the tax reform of the Trump administration, but it is not clear whether tax cuts can boost growth in the long term.
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