Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, speaking at a 'Town Hall' meeting
- Says Fed is coming up short on both employment and inflation goals
- We should take our time on raising rates
- Says can be patient, let economy heal, before raising rates
- Fed factors stock market into rate decisions, but not key driver
- Fed looks also at global factors as it tries to keep economy from getting too hot or cold
- Says strong equity market is not final goal for Fed
- People are nervous about Brexit impact, making them less likely to invest
- The worry with Brexit is if it could lead to end of Eurozone in future
Hardly anything surprising there from Kashkari, both on the Fed and also on Brexit. Brexit is not just about the UK and Europe, its also a warning that there may well be movements in other member states that could win a vote to 'exit'. Maybe nothing will come of that, but its an implication of the Brexit vote that markets have been concerned about since the referendum was announced by Cameron years ago.
Headlines via Reuters
More:
- Negative interest rates not very likely in US
- Not clear negative rates would work in US
- QE, forward guidance are tools Fed can use if needed
- We're not forecasting a recession around the corner
- Outlook is for moderate economic growth
- June US payroll report was very strong
(those via Bloomberg)