© Reuters. FILE PHOTO: Minneapolis Federal Reserve Bank President Neel Kashkari poses during an interview with Reuters in his office at the bank’s headquarters in Minneapolis, Minnesota, United States, Jan.10, 2020. REUTERS / Ann Saphir
(Reuters) – Federal Reserve Bank of Minneapolis chairman Neel Kashkari said on Sunday he expects inflation to rise in the coming months, but warned the U.S. central bank shouldn’t overreact to high inflation. as it is likely to be temporary.
“The math suggests we will likely see somewhat higher readings in the next few months before they start to decline,” Kashkari told CBS News’ Face the Nation in an interview on Sunday.
“But my view is that we also need to not overreact to some of these temporary factors, even if the pain is real,” Kashkari said in the interview.
Kashkari said on Tuesday he expected more clarity on the economic outlook by the time the Fed ends its bond buying program in mid-2022 and will keep an “open mind” on the timing of any rate hikes to follow.
President Joe Biden’s economic advisers defended his policies on Sunday amid rising inflation, which they said was a global problem linked to the COVID-19 pandemic, not the result of the administration’s plans.
Consumer prices in the United States last week recorded their largest annual increase in 31 years, driven by spikes in the cost of gasoline and other commodities.
Fusion Media or anyone involved in Fusion Media will accept no liability for any loss or damage resulting from reliance on the information including data, quotes, charts, and buy / sell signals contained on this website. Please be fully aware of the risks and costs associated with trading on the financial markets, it is one of the riskiest forms of investing possible.