Federal Reserve Kashkali: It's time to start the interest rate hike gradually, but it's not a big one

ON 5 AUGUST, IN AN INTERVIEW WITH THE CNBC, THE FED, KASHKALI, STATED THAT HE REMAINED OPEN TO FUTURE POLICY OPTIONS AND DID NOT ADVOCATE A SUBSTANTIAL INCREASE IN INTEREST RATES. IN HIS VIEW, MUCH OF THE RECENT INFLATION HAD COME FROM SUPPLY SHOCKS, WHILE A PART OF THE DEMAND FACTOR HAD BEEN ADDED. IN AN INTERVIEW WITH CNBC, KASHKALI SAID: “MY GOAL IS NOT TO SLOW THE ECONOMY, BUT TO REDUCE INFLATION.” IN HIS VIEW, THE TIME HAD COME TO START A GRADUAL INCREASE IN INTEREST RATES, BUT HE DID NOT SUPPORT A SUBSTANTIAL INCREASE IN INTEREST RATES. KASHKALI STRESSED THE VALUE OF MAINTAINING THE TRADITION OF EXPLAINING THE FED ' S POLICY RESPONSE MECHANISMS TO THE PUBLIC. HE SAID, “DO NOT THINK THAT THERE IS A MAGIC NUMBER OF MEETINGS (TO DETERMINE POLICY ACTION)”