The Federal Reserve’s decision to keep interest rates unchanged was a right decision as many people are going back to the workforce and inflation remain low, a top policymaker said Monday.
According to Minneapolis Fed President Neel Kashkari, economic data imply the US central bank still needs time before raising the rates. He added the perils of too low inflation rate are higher than too high inflation rate.
Inflation remains below the Fed’s 2% target, while unemployment rate touched 4.9% last month.
The Fed voted to maintain the benchmark rate for overnight lending at 0.25% to 0.5%. Although a non-voter this year, Kashkari currently partakes in talks discussing the central bank’s policy.
Kashkari, who is neither a dove nor a hawk, also said he looks at inflation, inflation estimations, and jobless rate to determine the right timing to increase rates.
The material has been provided by InstaForex Company – www.instaforex.com