Fed’s Kashkari: We will get rates to at least neutral by end of year

Minneapolis Fed Pres. Kashkari is speaking. He says:

• we indicated we will get rates at to at least the neutral by the end of the year
• the question I’m asking myself is, do we just have to follow through on what have promised, or will need to do more
• supply is being held back because of Covid, worker shortages
• Russia’s war, and China’s Covid lockdowns are affecting supply chains here
• we will do what we need to do to bring economy back into balance
• don’t know how much we will need to do
• if we get help from supply-side, won’t have to do with as much
• if we don’t get help from supply-side will need to do more
• right now, it’s easy to be a hawk because inflation is out of whack, and labor market is strong
• you want to avoid over correcting, but economics is imperfect
• maybe it’s a better crypto is imploding now than 5 years from now when more people’s money would have been at risk
• If inflation goes on for long enough it starts to change behavior and expectations
• We need to get inflation back down to 2% before wage – price spiral takes off
• Has a lot a confidence that raising rates will affect demand. Fed does not have tools to affect the supply side of the economy

The economic balls are in the air, and uncertainty prevails according to Kashkari. However, consistent with other Fed officials, the road for Fed policy is to the upside toward the neutral rate, which most officials still have at 2.5%.

The current target rate is 1.0%. If the Fed raises 2 times by 50 basis points over the next 2 meetings, that would bring the rate to 2.0% with 3 meetings left in 2022 after that.

The US  stock market 
Stock Market

A stock or equity market is defined as the aggregation of buyers and sellers of stocks, which reflect ownership claims on businesses.These may also include securities listed on a public stock exchange, as well as stock that is only traded privately. Common examples of this include shares of private companies that are sold to investors through equity crowdfunding platforms.Unlike the past, the stock market has grown to include a more mature retail market, though nearly all investment is still done through brokers and electronic trading platforms. What Makes Up the Global Stock Market?The stock market itself consists of a global network of stock exchanges, which most developed countries have access to. Presently there are over 60 such exchanges with a total market capitalization of over $70 trillion.The largest stock markets are the United States, Japan, and Great Britain, with numerous other exchanges worldwide following behind. Retail investors rely on the stock market for all their equity or share trading needs. This function has been assumed by online stock brokers, which have largely replaced the need for dealing with popularized trading floors for retail trading needs.A stock broker is an agent or intermediary between investors and the stock market. Stock brokers play an important role in online trading and have grown in scale and coverage in recent years.Stock brokers historically have charged for transactions and other services though crucially have shifted to commission-less transactions over the past few years after being disrupted by fintechs and other companies.

A stock or equity market is defined as the aggregation of buyers and sellers of stocks, which reflect ownership claims on businesses.These may also include securities listed on a public stock exchange, as well as stock that is only traded privately. Common examples of this include shares of private companies that are sold to investors through equity crowdfunding platforms.Unlike the past, the stock market has grown to include a more mature retail market, though nearly all investment is still done through brokers and electronic trading platforms. What Makes Up the Global Stock Market?The stock market itself consists of a global network of stock exchanges, which most developed countries have access to. Presently there are over 60 such exchanges with a total market capitalization of over $70 trillion.The largest stock markets are the United States, Japan, and Great Britain, with numerous other exchanges worldwide following behind. Retail investors rely on the stock market for all their equity or share trading needs. This function has been assumed by online stock brokers, which have largely replaced the need for dealing with popularized trading floors for retail trading needs.A stock broker is an agent or intermediary between investors and the stock market. Stock brokers play an important role in online trading and have grown in scale and coverage in recent years.Stock brokers historically have charged for transactions and other services though crucially have shifted to commission-less transactions over the past few years after being disrupted by fintechs and other companies.
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