September 5, 2017 / 6:00 PM / a year ago

Fed's rate hikes may be doing real harm to U.S. economy - Kashkari

(Reuters) - The Federal Reserve’s recent interest-rate hikes may be slowing inflation, wage growth, and job growth and doing “real harm” to the U.S. economy, one the U.S. central bank’s most dovish policymakers said on Tuesday.

Minneapolis Fed President Neel Kashkari speaks during an interview at Reuters in New York, U.S. on February 17, 2016. REUTERS/Brendan McDermid/File Photo

“There may be a lot more slack in the labour market than we appreciate,” Minneapolis Federal Reserve Bank President Neel Kashkari said at the University of Minnesota’s business school. “The Fed may have allowed inflation expectations to drift lower.”

“Maybe our rate hikes are actually doing real harm to the economy,” said Kashkari, who has dissented against the Fed’s rate hikes this year.

Reporting by Ann Saphir; Editing by Chizu Nomiyama

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