Chip Somodevilla
The effects of COVID-19, combined with Russia’s invasion of Ukraine, came outside of the Federal Reserve’s framework for understanding inflation, Minneapolis Fed President Neel Kashkari said on Thursday at the Michigan Bankers Association’s annual convention. “We’re going to get back to 2%,” Kashkari said. The question is how long it will take to get there. “It will probably take a year or two to get back to our 2% target,” he said. Discussing last year’s banking turmoil, Kashkari said categorizing some banks as too big to fail, inadvertently put smaller banks in a more precarious position. Customers now see the giant banks as safer, so they may move their money into the larger banks. Developing… check back for updates.