Fed’s Kashkari flags fears of witnessing uptick in unemployment, praises inflation outlook
Federal Reserve Bank of Minneapolis President Neel Kashkari crossed wires via a CBS News interview as he raised fears of witnessing an uptick in unemployment while praising the overall inflation outlook.
The policymaker cited a lack of surety about the end of the Fed’s rate hike trajectory but said that the US central bank is, “making good progress”.
Fed’s Kashkari highlights the US central bank’s data dependency while suggesting mixed views about the September rate hike.
Further, the policymaker also ruled out recession fears for the US economy, for now, while hoping that, “remains true”. “US economy has remained resilient amid various shocks, will continue to monitor any future shocks,” added Fed’s Kashkari per Reuters.
Market reaction
The news joined comments from ECB’s Lagarde to allow the EUR/USD pair in defending Friday’s corrective bounce by staying mildly bid near 1.1025 amid early Monday morning in Asia.