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Kashkari: The Interaction between Inflation and Financial Stability
In order to preserve anchored inflation expectations, central banks must bring inflation back down to their targets in a reasonable period of time.1 But price stability (and, in the case of the Federal Reserve, maximum employment) is not the only objective central banks must aim to achieve. Ensuring financial stability is also a primary responsibility for central banks because financial crises can cause great hardship to Main Street. Managing inflation and achieving financial stability are usually distinct and often complementary goals, where central banks’ limited policy tools can simultaneously work to support ... (full story)
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Fed’s Kashkari: If High Inflation Persists, Fed May Need To Raise Rates Further
— LiveSquawk (@LiveSquawk) July 12, 2023
- Fight Against Inflation Must Succeed
- Higher Rates Could Increase Pressure On Banks
- Bank Supervisors Should Ensure All Banks Are Prepared To Withstand Higher-Rate Environment