In an interview with CNBC on Monday, Minneapolis Federal Reserve President Neel Kashkari said that it was a close call on whether he will be in favor of hiking the policy rate one more time in June or pausing, per Reuters.
Key takeaways
“Seeing very little imprint of banking problems in Minneapolis Fed district.”
“Not seeing evidence yet that banking stress is doing our work for us on inflation.”
“Services inflation seems pretty darn entrenched.”
“It may be that we have to go north of 6%, but not clear.”
“We cannot protect the economy from a debt default, this type of brinksmanship weakens ourselves relative to global competitors.”
Market reaction
These comments don’t seem to be having a noticeable impact on the US Dollar’s performance against its major rivals. As of writing, the US Dollar Index was virtually unchanged on the day at 103.15.
