Fed’s Kashkari: Under tightening will not get us back to 2% in a reasonable time

Minneapolis Federal Reserve Bank President Neel Kashkari, in an interview with the Wall Street Journal on Monday, said that he would err on the side of overtightening monetary policy rather than not doing enough to bring inflation down to the central bank's 2% target.

Key Quotes:

• Under tightening will not get us back to 2% in a reasonable time.
• Some prices and wage data indicate that inflation could be settling somewhere north of 2%.
• More information is needed to come to a firm decision on interest-rate steps moving forward. 
• The economy has proved to be very resilient, inflation has come down.
• Making progress on inflation, the job market is strong.
• Fed has more work to do to get inflation under control.
• American consumers continue to spend.
• Need to finish the job of lowering inflation.
• 'Nervous' over declaring premature victory over inflation.
• The US economy is so far ahead of foreign economies.

Market Reaction:

The comments remain supportive of some follow-through US Dollar (USD) recovery from a six-week low touched on Monday.