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8/18, 8:38 PM (Source: TeleTrader)
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Tightening will 'tap breaks' on economy - Fed's Kashkari

Federal Reserve Bank of Minneapolis President Neel Kashkari stated on Thursday that the central bank's continuing hiking of key interest rates will "tap breaks on the economy."

Answering questions at the Young Presidents Organization Gold Twin Cities luncheon, he reiterated that inflation needs to be tamed "urgently," and that although the Fed knows how to reach its 2% target goal, he is unsure whether the central bank can achieve this without pushing the economy into a recession.

Kashkari further noted that the labor supply potential "is more or less fixed" and that the focus now needs to be on getting "the demand down."

Baha Breaking News (BBN) / AY