Welcome to english.eastday.com.Today is
Follow us @
Contribute to us!










MNCs in Shanghai Best Practice Awards|Cool City
Lujiazui Forum|BRICS Economic Think Tank Forum
11th SH Int'l Youth Interactive Friendship Camp |New Year of China’s 56th Ethnic Minority—Jino’s Forging Iron Festival
China Stories
Consul Generals' New Year Wishes 2015
Where to go today?
Home >> auto >> Article
U.S. Fed official raises doubt about weakening inflation
From:Xinhua  |  2017-06-17 05:48

Video PlayerClose

WASHINGTON, June 16 (Xinhua) -- U.S. Federal Reserve Bank of Minneapolis President Neel Kashkari said on Friday that he voted against the central bank's decision to raise interest rates this week because of recent weakening inflation data.

"If we base our outlook for inflation on these actual data, we shouldn't have raised rates this week," Kashkari said in an essay published on the bank's website.

"Instead, we should have waited to see if the recent drop in inflation is transitory to ensure that we are fulfilling our inflation mandate," he argued.

The core price index for personal consumption expenditures, an inflation indicator favored by the Fed, increased 1.5 percent in April after rising 1.6 percent in March, still below the central bank's target of 2 percent, according to the Commerce Department.

Kashkari, the lone dissenter who also voted against a rate hike in March, said the risk of raising rates too soon is a continuation of the central bank's "track record of coming up short of our inflation objective."

He believed the risk of waiting was not large, as the Fed could respond appropriately if inflation does start to climb.

"If it leads to a moderate overshoot of 2 percent, that shouldn't be concerning since we say we have a symmetric target and not a ceiling," he said.

However, Fed Chair Janet Yellen said Wednesday at a press conference that "it's important not to overreact to a few readings, and data on inflation can be noisy."

She expected inflation to move up and stabilize around 2 percent over the next couple of years, with employment near its maximum sustainable level and the labor market continuing to strengthen.

The Fed on Wednesday raised the benchmark interest rates for the fourth time since December 2015 and unveiled a plan to trim its balance sheet later this year, sending a signal of confidence to the market.