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Fed’s Kashkari Says One More Hike Needed Even With Soft Landing
Federal Reserve Bank of Minneapolis President Neel Kashkari said he sees a 60% chance the US central bank can bring inflation down to its 2% target without causing severe damage to the economy. In a letter published Tuesday on the Minneapolis Fed’s website, Kashkari laid out two potential scenarios for the Fed’s response to inflation going forward. One, the “soft-landing” path, would likely see policymakers raise rates once more before holding them steady in order to fully cool inflation. In the other, to which he ascribed a 40% likelihood, inflation would be more entrenched and require further rate increases ... (full story)