{"id":535238,"date":"2023-01-05T01:17:52","date_gmt":"2023-01-04T22:17:52","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/neel-kashkari-sees-feds-target-interest-rate-peaking-at-5-4\/"},"modified":"2023-01-05T01:17:52","modified_gmt":"2023-01-04T22:17:52","slug":"neel-kashkari-sees-feds-target-interest-rate-peaking-at-5-4","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/neel-kashkari-sees-feds-target-interest-rate-peaking-at-5-4\/","title":{"rendered":"#Neel Kashkari sees Fed&#8217;s target interest rate peaking at 5.4%"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3e84e94a01f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3e84e94a01f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/neel-kashkari-sees-feds-target-interest-rate-peaking-at-5-4\/#%E2%80%9CNeel_Kashkari_sees_Feds_target_interest_rate_peaking_at_54%E2%80%9D\" >&#8220;Neel Kashkari sees Fed&#8217;s target interest rate peaking at 5.4%&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CNeel_Kashkari_sees_Feds_target_interest_rate_peaking_at_54%E2%80%9D\"><\/span>&#8220;Neel Kashkari sees Fed&#8217;s target interest rate peaking at 5.4%&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/neel-kashkari.jpg?quality=90&amp;strip=all\" \/><\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>The Federal Reserve should continue hiking interest rates at its next few meetings at a minimum until it is sure that inflation has peaked, Minneapolis Fed President Neel\u00a0Kashkari\u00a0said on Wednesday, as he set out his own forecast that the policy rate should initially pause at 5.4%.<\/p>\n<p>\u201cIn my view \u2026 it will be <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriate to continue to raise rates at least at the next few meetings until we are confident inflation has peaked,\u201d\u00a0Kashkari\u00a0said in an <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.minneapolisfed.org\/article\/2023\/why-we-missed-on-inflation-and-implications-for-monetary-policy-going-forward\">essay posted on the regional Fed bank\u2019s website<\/a>, even as he noted increasing evidence price pressures appear past their worst.<\/p>\n<p>The central bank, which rapidly raised interest rates in 2022 to combat high inflation, is eyeing a stopping point in its current tightening cycle in the spring of this year. Its main policy rate currently sits in a target range of 4.25% to 4.50%.<\/p>\n<p>Minutes of the Fed\u2019s last\u00a0policy meeting in December showed\u00a0rate-setters still focused on controlling the pace of price increases amid worries of any \u201cmisperception\u201d in financial markets that their resolve to fight inflation was in any way flagging.<\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>Kashkari\u2019s forecast of 5.4% as a point at which to pause is at the more aggressive end of Fed policymakers, although 15 of 19\u00a0of them\u00a0expect the target rate to rise by either three-quarters of a percentage point or a full percentage point in coming months.<\/p>\n<p>Kashkari, whose projections last year of where interest rates would need to go in 2023 were the most hawkish of all Fed policymakers, also said rates would have to be held at their initial peak for a \u201creasonable\u201d period to allow time for the central bank\u2019s actions to work their way through the economy and continue to bring inflation to heel.<\/p>\n<p>He also cautioned that the road would likely be bumpy and indicated a bias to overshooting\u00a0rather than\u00a0undershooting on bringing inflation down.<\/p>\n<p>\u201cTo be clear, in this phase any sign of slow progress that keeps inflation elevated for longer will warrant, in my view, taking the policy rate potentially much higher,\u201d\u00a0Kashkari\u00a0said.<\/p>\n<p>Fed Chair Jerome Powell has also made plain that the central bank expects to hold rates at a high level for an unspecified period of time and has pushed back against expectations for rate cuts this year.<\/p>\n<p>Of course, much depends on how incoming data, in particular on inflation and labor market strength, reinforce that view. Despite a waning of price pressures late last year, the Fed\u2019s preferred inflation gauge is still rising at a 5.5% annual rate, more than twice the  central bank\u2019s 2% target.<\/p>\n<p>Data released on Wednesday also showed job openings, a closely watched indicator as a proxy for labor market shortages and pressure on employers to give higher-than-normal wage increases,\u00a0fell only moderately\u00a0in November.<\/p>\n<p>For his part,\u00a0Kashkari\u00a0reiterated the Fed must avoid cutting rates prematurely. \u201cThat would be a costly error, so the move to cut rates should only be taken once we are convinced that we have truly defeated inflation,\u201d he said.<\/p>\n<p>Drawing on the unexpected surge in inflation caused by supply and demand imbalances over the past two years,\u00a0Kashkari\u00a0also chided the inability of\u00a0traditional economic\u00a0frameworks at the Fed and elsewhere to forecast inflation outside of labor market and inflation expectation channels and called for new models to predict high inflation.<\/p>\n<p>\u201cFrom what I can tell, our models seem ill-equipped to handle a fundamentally different source of inflation, specifically, in this case, surge pricing inflation,\u201d he said.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2023\/01\/04\/neel-kashkari-sees-feds-target-interest-rate-peaking-at-5-4\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Neel Kashkari sees Fed&#8217;s target interest rate peaking at 5.4%&#8221; The Federal Reserve should continue hiking interest rates at its next few meetings at a minimum until it is sure that inflation has peaked, Minneapolis Fed President Neel\u00a0Kashkari\u00a0said on Wednesday, as he set out his own forecast that the policy rate should initially pause at&#8230;<\/p>\n","protected":false},"author":1,"featured_media":535239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/neel-kashkari.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[137985,70550,70551,70552,138018],"class_list":["post-535238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-1-4-23","tag-federal-reserve","tag-inflation","tag-interest-rates","tag-neel-kashkari"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/535238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=535238"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/535238\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/535239"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=535238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=535238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=535238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}