(Reuters) – Minneapolis Federal Reserve Bank President Neel Kashkari on Monday said that given the surprising resilience in the U.S. economy, the Fed probably needs to raise rates another quarter of a percentage point and keep rates high for some time.
“If the economy is fundamentally much stronger than we realized, on the margin, that would tell me rates probably have to go a little bit higher, and then be held higher for longer to cool things off,” he said in an event at the Wharton School of Business, a recording of which was made available late Monday.
Most Fed policymakers expect one more interest-rate hike will be needed this year, projections published last year, and “I’m one of those folks,” Kashkari said.
(Reporting by Ann Saphir; Editing by Himani Sarkar)
