Fed’s Kashkari to Trump: There’s no politics involved in Fed meetings

Neel Kashkari

Minneapolis Federal Reserve President Neel Kashkari rejected Donald Trump’s charges that politics influence the Federal Reserve’s monetary policy.

“Politics simply does not come up,” the Republican Fed governor told CNBC’s “Squawk Box” on Monday. “We look at the economic data and … everyone around the table is committed to achieving our dual mandate” of employment and inflation.

Minutes earlier, Trump told CNBC the Fed is refraining from raising rates due to pressure from President Barack Obama.

“The interest rates are kept down by President Obama,” the GOP presidential candidate said. “I have no doubt that that’s the reason they are being kept down.”

While Kashkari said he avoids commenting on short-term monetary policy decisions, he said he is paying close attention to inflation.

“Overall I think my outlook is still for moderate economic growth,” said Kashkari, a nonvoting member of the Fed’s policymaking committee. He said a little bit less than 2 percent for the year “feels about right.”

Investors have been focused on whether the Fed will hike rates again. It meets next week.

“My view is there doesn’t seem to be huge urgency to do anything frankly,” Kashkari added.