Fed's Kashkari says need to keep up support for economy
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FEBRUARY 1, 2021 12:33 PM UPDATED 5 MINUTES AGO
By Reuters Staff
2 MIN READ
(Reuters) - The U.S. central bank and Congress have responded more to the COVID-19 crisis than they did in the last crisis, Minneapolis Federal Reserve Bank President Neel Kashkari said, and they need to do still more to return the economy faster to its pre-crisis footing.
“Right now I’m not concerned about it - this is like wartime spending,” Kashkari said at an online seminar held by Montana’s Bureau of Business and Economic Research, in response to a question about the risks of government borrowing too much in the face of the pandemic. “We have the capacity to do what we need to do.”
The Fed has said it will keep interest rates at their current near-zero level until the economy reaches full employment and inflation not only reaches 2% but looks set to exceed it for some time. It has also pledged to keep buying at least $120 billion of Treasuries and mortgage-backed securities until there is “substantial further progress” toward both of those goals.
Reporting by Ann Saphir, Editing by Chizu Nomiyama
https://www.reuters.com/article/us-usa-fed-kashkari/feds-kashkari-says-need-to-keep-up-support-for-economy-idUSKBN2A135J?il=0
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