Fed’s Kashkari says need ‘stronger medicine’ to boost inflation By Reuters

By Ann Saphir

(Reuters) – Minneapolis Federal Reserve Bank President Neel Kashkari, one of the U.S. central bank’s most vocal doves, on Thursday repeated his call for a half-percentage-point interest-rate cut to boost sagging inflation expectations.

“We need to do something that kind of shocks the system,” Kashkari said at a town hall in Aberdeen, South Dakota. Bets in financial markets suggest a quarter-point interest-rate cut is the most likely outcome of the Fed’s policy-setting meeting in three weeks. “Let’s give it a little stronger medicine,” Kashkari said.