Neel Kashkari: Pause Interest-Rate Hikes to Help the Labor Force Grow: "The Fed has raised the federal-funds rate eight times in the past three years, and inflation now stands right at the 2% goal. A hard inflation ceiling would justify pre-emptive rate increases to ensure inflation doesn’t climb any higher. But the symmetric objective gives the Federal Open Market Committee the flexibility to see how the economy evolves before determining if further rate increases are necessary. The FOMC should seize this opportunity for a pause...

...With the federal-funds rate at 2% to 2.25%, monetary policy is now close to neutral, neither stimulating nor restricting the economy. Prematurely tapping the brakes could restrain wage growth and keep many Americans from participating in the economic recovery. The Fed has consistently undershot its 2% inflation target.... A pause on rate increases would allow the FOMC to gain important insights. Crucially, it would help determine how much slack remains in the labor market....


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