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5/22/2023, 1:24 PM (Source: TeleTrader)
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Fed's Kashkari: Close call on raising or pausing rate hikes

United States Federal Reserve Bank of Minneapolis President Neel Kashkari (pictured) remarked on Monday that there is a "close call" at the central bank on whether the Federal Market Open Committee (FOMC) should pause the raises in interest rates or continue with them.

Speaking to CNBC, Kashkari estimated the Fed might need to raise the key rate above 6%. He stressed that inflation in services appears to be "pretty darn entrenched" while noting that the job market remains robust. He also noted he is not "seeing evidence yet" that the crisis in the banking sector is "doing our work for us" regarding inflation.

Kashkari also briefly commented on the negotiations between US President Joe Biden and House Speaker Kevin McCarthy on raising the debt ceiling, saying the central bank "cannot protect the economy from a debt default."

Baha Breaking News (BBN) / JR