August 21, 2019 / 10:49 AM / a month ago

Fed's Kashkari says U.S. central bank should use forward guidance now: FT

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

(Reuters) - The U.S. Federal Reserve should use forward guidance now as the global economy is slowing down, the yield curve has inverted and investment in U.S. businesses has stalled, Minneapolis Federal Reserve Bank President Neel Kashkari wrote in an op-ed for the Financial Times.

“Absent some surprise reversal in these economic developments, I will argue that we should not only cut the federal funds rate, but that we should also use forward guidance to provide even more of a boost to the economy than a rate cut alone can deliver”, Kashkari wrote on Wednesday.

Kashkari does not have a vote on monetary policy this year but participates in policy discussions at the U.S. central bank.

Reporting by Kanishka Singh in Bengaluru; Editing by Toby Chopra

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