🚨What if the Federal Reserve isn't done hiking interest rates? 🤔 Minneapolis Fed President Neel Kashkari says Americans have such a ‘visceral’ hatred of inflation that they’d rather have a recession! 💥 In a recent interview, Kashkari revealed there's a 40% chance that interest rates might need to go 'meaningfully higher' to finally tame inflation. The current inflation rate is hovering around 3.7%, still above the Fed's target of 2%. While Kashkari sees a 60% chance that one more rate hike could do the trick, he warns that stubborn inflation might push the Fed to take even more drastic measures. 😬
Higher interest rates mean higher borrowing costs for everything from credit cards to mortgages. Imagine paying more on your loans just as you're trying to save for that dream vacation or new home. 🏡✈️
Kashkari's cautious optimism is tied to what he calls a 'soft landing'—where inflation cools without causing a recession. But he admits, the journey isn't over. The Fed's watching the data closely, and any unexpected economic shocks could change everything. 🌐⚠️
So far, much of the progress in reducing inflation has come from improved supply chains and more people returning to work. But Kashkari questions if monetary policy alone is enough to finish the job. 📊
With two more Fed meetings scheduled this year, all eyes are on the policymakers. Will they raise rates again? Or will they hold steady and wait for more data? The suspense is real! 🕵️♂️
