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

[August 21, 2019]  (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.

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

"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)

[© 2019 Thomson Reuters. All rights reserved.]

Copyright 2019 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.