Minneapolis Federal Reserve President Neel Kashkari wants interest rates near zero so the labor market can return to its pre-pandemic strength. “Americans want to work, and I want to give them the chance to work,” Kashkari said. Kashkari is in the minority. With rising inflation, most Fed policymakers support interest rate hikes.

a. Why is Neel Kashkari concerned?

b. Could keeping interest rates low damage the Fed’s credibility? Why or why not?