Minneapolis Fed dove Kashkari
Minneapolis Fed dove Kashkari was out after the close yesterday warning that the Fed "totally misread what maximum employment is," but shouldn't react now to "noisy" data by cutting rates. Neither did he believe that the Fed needs to tap the brakes, nor that the U.S. economy is overheating. He also threw a barb back at Trump, saying that he's free to say what he wants, but policymakers don't have to listen. In case of recession, the Fed would first cut rates, then could use QE and forward guidance. Kaskhari said the impact of tax cuts is still unclear and doesn't believe there's a workforce shortage, just employers reluctant to lift wages. His main focus is making sure the Fed doesn't raise rates too much and he embraces a carbon tax to address climate change. Overall, he's been consistently dovish, but in line with the current "patient" mantra.