Minneapolis Federal Reserve Bank President Neel Kashkari said Wednesday it’s ‘appropriate’ for the U.S. central bank to take steps to normalize monetary policy to deal with high inflation, but warned against raising rates too fast or too far.
“My caution to my colleagues, and to myself, is, ‘let’s not overdo it,’” Kashkari said at a town hall for United Natural Foods Inc. employees, noting that an aging population among other factors will tend to pull inflation down over time. “If we raise rates really aggressively, we run the risk of slamming the brakes on the economy, putting the economy into recession, which would then—we'd be crashing back down into this low inflation environment.”
