Economics
Kashkari Says Worker Bargaining Power Should Inform Fed's Stance
- Minneapolis Fed chief links rates to labor share in interview
- Other officials downplay Fed policy’s effects on inequality
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Federal Reserve officials are speaking out about rising inequality and the harm it does the U.S. economy, but most still hesitate to say monetary policy can do much to help.
Neel Kashkari is starting to sound like an exception. Since becoming president of the Minneapolis Fed in 2016, he’s been a consistent dove, arguing for keeping interest rates lower as the labor market heals.