Minneapolis Fed Chief Defends Dissent on Rate Hike

"I'd be very surprised if core inflation reaches 2 percent this year". "And if that doesn't happen, then the current stock of dollars out there in other countries' foreign exchange reserves are the sum total we will ever see". "It could be three, it could be two, it could be four if things really pick up". Before his time at Treasury, Kashkari was a vice president at Goldman Sachs.

In an interview on CNBC's "Squawk Box", Minneapolis Fed President Neel Kashkari said he voted against the rate hike because inflation is still below the central bank's 2 percent target. US gold futures were mostly unchanged at $1,230.80. Policy makers also view global risks as less threatening than a year ago, and solid progress at home without major headwinds from overseas have improved their confidence in the outlook.

Elsewhere, market participants were also digesting comments by Chicago Fed president Charles Evans who told Fox News that the Fed was on track to raise rates twice this year and could be more or less aggressive depending on whether inflation picked up or not. Notably, economist Jonathan Smoke shared the following view on the Fed's rate hike on March 15: "Today's Fed announcement is going to have the greatest impact on first-time home buyers as they consider their monthly payment budgets". Kashkari declined to say how many he had estimated, though some Fed watchers say he probably has just one increase written down, while Evans probably has two hikes.

Markets will be keenly awaiting Fed cues this week with no less than nine policy makers set to speak, including Chair Janet Yellen on Thursday.

  • Zachary Reyes