• A resilient economy and a possibly higher neutral rate of interest means the U.S. Federal Reserve can take time, with less risk to an ongoing economic recovery, before deciding to reduce the benchmark interest rate, Minneapolis Federal Reserve president Neel Kashkari wrote in an essay published Monday.
  • Inflation is making “rapid progress” towards the Fed’s 2% target due to improvements in the supply of labor, goods and services, Kashkari said. While there may be some signs of economic weakness, he added, the overall story right now is one of continued growth and low unemployment — not of an economy stressed by the impact of a high Fed policy rate.