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Fed policy is 'modestly restrictive,' Kashkari says

BY Reuters | ECONOMIC | 11/12/24 02:31 PM EST

(Reuters) - Minneapolis Federal Reserve Bank President Neel Kashkari said he feels U.S. monetary policy is currently "modestly restrictive," with short-term borrowing costs continuing to slow inflation and the economy, but not by a lot.

"The U.S. economy is in a good place," Kashkari said at a Yahoo! Finance event.

"In my judgment we are still at a modestly contractionary stance, but ultimately the economy will guide us, in terms of how far we are needing to go" in cutting interest rates further.

(Reporting by Ann Saphir; Editing by Chris Reese)

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Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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