The Fed: Fed’s Kashkari says he doesn’t want any rate hikes through 2023

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Minneapolis Federal Reserve President Neel Kashkari told Reuters on Friday that he opposes any interest rate hikes through 2023 at least and that higher inflation readings will be transitory.

In the interview, Kashkari said keeping rates close to zero would help more Americans find work.

Earlier Friday, St. Louis Fed President James Bullard told CNBC he thinks the first rate hike should come late next year.

Fed officials are split over the outlook for interest rates,.

According to the central bank’s latest “dot plot” chart, a majority of Fed officials now see two rate hikes by the end of 2023. In March, the majority saw no rates hikes at all.

Kashari and four of his colleagues still don’t want any increase in rates through the end of 2023 forecast window. On the other hand, seven Fed officials penciled in one rate hike in 2022.

Kashkari said he thought the Fed should “kill” the dot plot.

Stocks
DJIA,
-1.57%

COMP,
-0.92%

were sharply lower on Friday, in part a response to Bullard’s remarks.

The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.435%

rose initially but sank as the day progressed and ended at 1.437%.