In a post on Medium, Minneapolis Fed President and 2022 voting FOMC member Neil Kashkari said on Monday that he now sees two rate hikes in 2022. That is a switch from his previous forecast for now rate hikes until 2024, he said in the post. He warned in the post that the costs of ending up in a high-inflation regime outweigh the costs of ending up in a low-inflation regime. He expects the threshold for first-rate hikes to be met after the April economic data is released, indicating his potential support for a May rate hike. 

Market Reaction

Despite Kashkari, who will be a policy voter in 2022, being known as one of the most dovish Fed members, his “hawkish shift” has not impacted FX markets. 

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