Kashkari: Fed can relax on rate hikes when compelling evidence CPI heading toward 2% seen

More from Federal Reserve Bank of Minneapolis President Neel Kashkari:

• We can only relax on rate hikes when we see compelling evidence that inflation is heading down towards 2%
• If inflation were at 4%, I'd be more willing to say, let's take our time and avoid the risk of overdoing it.
• With inflation at or over 8%, we don't want inflation expectations to become unanchored.

• fear in back of mind is that inflation is more embedded at higher level than appreciated

• a lot of balance sheet tightening has already happened due to forward guidance
• biggest fear is that we are misreading underlying inflation dynamics

Earlier:

• Fed's Kashkari says inflation is very high and its the job of the Fed to curb it

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