Federal Reserve's Kashkari: Clearly Communicating Policy Response Mechanism Will Help Market Understanding

Odaily News: Federal Reserve's Kashkari said on Wednesday that clearly explaining to the public and markets how the Fed will adjust its policy response under different economic scenarios—the so-called "reaction function"—is helpful, and this practice should be maintained. In an interview with CNBC, Kashkari said it is valuable for the Fed to continue explaining its policy response mechanism to the market. During the interview, he once again called on the Fed to begin a series of small interest rate hikes to curb inflation, which is currently above the Fed's 2% target.

Kashkari stated: "I think there is value in maintaining the tradition of explaining our policy reaction function to the public, and then letting the public make their own judgments based on that information." (Jin Shi)