Goolsbee and Kashkari: In a wait-and-see mode.

Minneapolis Fed Pres. Kashkari:

• Is cautious about how restrictive monetary policy is
• The business community does not think that financial conditions are tight.
• I am in a wait and see mode
• Can’t rule out raising rates
• We saw gains in the supply side of the economy which drove the declines inflation last year. I just don’t know this year if we will see more.
• Is there argument that the neutral rate has gone up.
• Not sure where the neutral rate is now. That is why in a wait and see mode.
• The default is we will sit and wait for an extended period of time
• The bar is high for another rate hike but can’t rule it out

Chicago Fed Pres. Goolsbee

• We have crosscurrents coming through on the data
• Price inflation on housing in the forefront of my mind
• See some bumps in the inflation road
• Nothing is ever “not on the table”
• Housing inflation has remained well above precovid. If inflation is to come down, that would have to tick down.

This article was written by Greg Michalowski at www.forexlive.com.