According to Odaily, Neel Kashkari, a representative from the US Federal Reserve, has indicated that it may take one to two years for the inflation rate to fall back to 2%. Currently, the inflation rate has not yet returned to 2%. Kashkari also commented on the state of the US banking sector, stating that having only 5-6 major banks is not the most ideal situation for the economy. He further noted that the outlook for interest rates is dependent on the economic path.
Kashkari's comments come at a time when the US economy is grappling with inflationary pressures. The Federal Reserve has been implementing measures to control inflation and stabilize the economy. However, the current state of the banking sector, with only a handful of major players, is not the most conducive for economic growth. This situation could potentially impact the effectiveness of the Federal Reserve's measures.
The future of interest rates, according to Kashkari, will be determined by the trajectory of the economy. This suggests that the Federal Reserve will continue to monitor economic indicators closely and adjust its policies accordingly. The timeline of one to two years for the inflation rate to return to 2% indicates that the Federal Reserve anticipates a gradual recovery of the economy.
