October 18, 2019 / 3:04 PM / a month ago

Fed's Kashkari signals support for further policy easing

Oct 18 (Reuters) - Minneapolis Fed President Neel Kashkari on Friday signaled he continues to support further U.S. interest rate cuts, saying that monetary policy should be “somewhat accommodative”, given the risks to the economic outlook.

Currently the Fed’s policy setting is neutral or possibly slightly contractionary, Kashkari said at the Federal Home Loan Bank of Des Moines Leadership Summit, pointing to the fact that the Fed’s current target for overnight lending rates, at between 1.75% and 2%, is above the yield on the 10-year rate.

But given slowing global growth that will affect the United States, and slowing business spending and hiring despite a strong U.S. consumer, Fed policy should be easier, he said. (Reporting by Ann Saphir; Editing by Alex Richardson)

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