Nov 9 (Reuters) – Two of the U.S. central bank’s most dovish policymakers said Tuesday they expect to get more clarity on the post-pandemic economic outlook by next summer, when the Federal Reserve is expected to finish winding down its asset purchases.
Whether that clarity leaves them convinced interest rates should stay at their current near-zero level for another year or more, or moves them to join the half of their fellow Fed policymakers who support more immediate rate hikes, will depend on two main factors, their remarks suggested: if inflation has begun to abate as they expect, and if workers are flooding back into the labor force as they have long hoped.
Minneapolis Federal Reserve Bank President Neel Kashkari, who in September was the Fed’s only policymaker to call for leaving rates at their current near-zero level until 2024, said Tuesday he is keeping an “open mind” on monetary policy.
With the latest COVID-19 surge fading…
