Home / Others / Kashkari says the Fed could be the best option to reduce US inequality UU

Kashkari says the Fed could be the best option to reduce US inequality UU



The conventional wisdom that inequality is a problem for elected officials and beyond the reach of central bankers may be backward, said the chairman of the Federal Reserve Bank of Minneapolis, Neel Kashkari.

"Historically, the Fed has always said that distributive outcomes are the domain of monetary policy: they are the domain of fiscal policy, and monetary policy only works around the corner," Kashkari said on Monday. interview. "In fact, I'm concluding that it's just the opposite."

Kashkari's argument marks his last fair against the majority opinion within the Fed, where he has become the most strident advocate of low interest rates since he began working there in 2016. He dissented against the three increases of Rates this year on the basis that inflation is well below the Fed's 2 percent target, and published an essay on Monday that added to that criticism concerns about a flattening yield curve.


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