The President of the Federal Reserve Bank of Minneapolis says that the US is currently running an increased risk of recession.
In a new interview with CNBC, Minneapolis Fed leader Neel Kashkari says that he has discussed discussions with small and large companies in his region.
“The most common remark I get is that they are uncertain about the prospects, so they are nervous about making new investment decisions. Even companies have said to me if they knew where the rate would eventually establish, they could adjust their supply chains around that new environment.
That everything else is equal, they may want to lower the rates, but wherever they settle, they can adapt to it. But at the moment there is still so much uncertainty that the negotiations will continue. Many companies are on hold, and if companies and consumers are on hold, that downward risk for the economy may even be a risk of recession. “
Last week, Kashkari’s colleague President Austan Goolsbee, who leads the bank in Chicago, warned that President Donald Trump’s policy choices could lead to an unfavorable economic environment known as internships dominated by stagnating economic growth, high inflation and high unemployment.
If the FED is eventually confronted with double threats of persistent inflation and a weakening economy, Kashkari claims that the central bank must give priority to the fight against inflation.
“Voor mij, omdat de inflatie in de VS en rond de meeste landen ter wereld, de meeste geavanceerde economieën … vier jaar is verhoogd, ben ik erg nerveus dat uiteindelijk de inflatieverwachtingen hun anker kunnen verliezen aan dat doel van 2% dat we hebben. Als de inflatie de afgelopen vier jaar meer comfortabel zou zijn, zou ik meer comfortabel zijn, een meer comfortabel zijn, een meer comfortabel, quote van deze eenmalige tarief-geïnduceerde Inflation.
But because inflation has been hot for four years, it makes me nervous, and that ensures that I want to make a mistake in the direction of protecting and defending inflation anchor of 2%. “
https://www.youtube.com/watch?v=8YC4X3HJRPY
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