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Fed's rate hikes may be doing real harm to U.S. economy: Kashkari
September 5, 2017 / 5:38 PM / 16 days ago

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

FILE PHOTO - California Republican gubernatorial primary candidate Neel Kashkari speaks on stage during the California Republican Party Spring Convention in Burlingame, California, U.S. on March 16, 2014 REUTERS/Stephen Lam/File Photo

(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.

“There may be a lot more slack in the labor 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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