Fed Likely to Hold Rates for ‘Extended Time,’ Kashkari Tells FT

The Federal Reserve will likely keep interest rates on hold for an “extended period of time” until new economic data convinces policymakers that inflation is on the way down, Minneapolis Fed President Neel Kashkari told the Financial Times.

The US economy and labor markets are strong, yet “many people are deeply unhappy about the status of the economy,” likely due to recent high inflation, Kashkari told the FT podcast The Economics Show. His comments were made May 27, ahead of the blackout period before the Fed’s June 12 rate decision, and the podcast went live on Monday.

Economic strength means ...