In The News Today

Posted at 10:49 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Now this is what I call dissention.

Fed’s Kashkari Wants Plan On Balance Sheet Before Any More Rate Hikes
March 17, 2017

Minneapolis Federal Reserve Bank President Neel Kashkari, the lone dissenter against the U.S. central bank’s decision this week to raise interest rates, said on Friday the U.S. economy is still falling short on employment and inflation.

Even after the data support tightening, Kashkari said in a statement, the Fed should wait on raising interest rates until it publishes a detailed plan for how and when it will reduce its $4.5 trillion balance sheet.

“The announcement of our balance sheet plan could trigger somewhat tighter monetary conditions,” Kashkari said, resulting in the equivalent of a rate hike of unknown size. “After it has been published and the market response is understood, we can return to using the federal funds rate as our primary policy tool, with the balance sheet normalization under way in the background.”Minneapolis Federal Reserve Bank President Neel Kashkari, the lone dissenter against the U.S. central bank’s decision this week to raise interest rates, said on Friday the U.S. economy is still falling short on employment and inflation.

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