December 19, 2017 / 6:30 PM / a year ago

Fed's Kashkari says should wait for inflation before raising rates

Dec 19 (Reuters) - Minneapolis Federal Reserve Bank President Neel Kashkari, who this year has dissented three times in votes at the U.S. central bank’s policy meetings which raised rates despite low inflation, on Tuesday repeated his view that the labor market still shows signs of slack and could be improved.

“Why should we raise rates until we actually see inflationary pressures building?” Kashkari asked at a Lambda Alpha International meeting in Roseville, Minnesota.

He added that by his estimate, a million workers are sidelined and could return to the workforce if the job market continues to strengthen. “We are better off letting inflation come to us than preemptively cutting off the expansion by raising rates prematurely.” (Reporting by Ann Saphir)

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