The Federal Reserve cannot be constrained from policy decisions because of Wall Street overreactions, said Minneapolis Fed President Neel Kashkari on Wednesday. “We can’t make policy based on market blips, up and down,” Kashkari said. The Minneapolis Fed president, one of the most dovish central bankers, said that he has “hope” inflation is picking up after a decade of being below the central bank’s 2% target. “We keep saying inflation is right around the corner and then it disappoints us,” Kashkari said in an interview on Bloomberg Television. Asked if he would be worried that Wall Street would overreact to higher inflation, Kashkari replied: “Wall Street overreacts to everything.”
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From:: Stock Market News