Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, hinted at the potential need for an additional interest rate hike this year, if the U.S. economy continues to perform robustly and exceed expectations, he suggested on Monday.
Kashkari made these remarks during a recent event held at the University of Pennsylvania’s Wharton School. He stated that if the economy proves to be significantly stronger than anticipated, it might necessitate a slight increase in rates. This would be followed by maintaining the elevated rates for an extended period to moderate the economic heat.
The possible adjustment in monetary policy, as indicated by Kashkari, is based on the premise of an unexpectedly thriving economy. It would involve raising interest rates one more time within this year and sustaining the stringent policy for a longer duration than initially planned.
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