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5/6, 5:00 PM (Source: TeleTrader)
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Kashkari: Fed is not behind the curve

President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, argued on Friday that the US central bank is neither "behind the curve," nor "falling even further behind" in efforts to get inflation under control.

"While I agree real rates are more important than nominal rates in driving economic activity, I believe it is long-term real rates — say 5 years, 10 years or longer — rather than overnight rates that influence business and consumer demand for credit," Kashkari said in an article.

The central banker added that his estimate for a nominal neutral funds rate is 2%, while the range of estimates among other Fed presidents spans from 2% to 3%.

Baha Breaking News (BBN) / BU