Fed's Kashakari is happy with the Fed's moves this year
Fed's Kashakari is happy with the Fed's moves this year, including last week's easing, in a CNBC interview. He believes the balance of risks are still to the downside, and that the costs of easing are less than not reducing rates. He was heartened by Friday's jobs report and believes the economy has yet to reach full employment given wage pressures have yet to rise. The uber-dove remains concerned over low inflation, and doesn't want inflation expectations to get anchored to the downside. He wants the FOMC to state it won't be raising rates until the inflation target has been achieved, basically what Powell suggested at last week's press conference. He won't rule out negative rates, but he's not ruling out such a scenario. He thinks policy is currently around neutral or a little accommodative. Kashkari is a voter in 2020.