An article in the Wall Street Journal (gated), written by Fed insider Nick Timiraos re comments from Federal Reserve Bank of Minneapolis President Neel Kashkari
Main points:
- “I’m open to the idea that we can move a little bit more slowly from here,”
- “I would object to any kind of declaration that we’re done. If the committee chooses to skip a meeting because we want to get more information, I could make the argument why that makes sense,”
- “A skip to get more information is very different in my mind than [saying], ‘Hey, we think we’re done.’”
Kashkari cited the delayed impact of the Fed’s rapid rate increases already, and also and to a potential credit crunch from higher bank-funding costs that resulted from the failure of three midsize lenders since March. Also acknowledged inflation was slowing, “it does seem to be coming down,” … “It is at least not getting worse. And then you add the uncertainties about the banking sector, and are the stresses really behind us? Are there more stresses yet to emerge? I think that does give us some reason to say, ‘Hey, let’s go a little bit slower.’”
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The next Federal Open Market Committee (FOMC) meeting is June 13-14