Back in early February, Minneapolis Fed President Neel Kashkari went on CNBC to make it clear that loosening financial conditions, including mortgage rates which had slipped at the time to 6.09%, could interfere with the Fed's inflation fight if it saw the economy warm up.
"The [U.S.] housing market is starting to show signs of life again because mortgage rates have come back down," Kashkari said. "You're right it [loosening financial conditions] does make our jobs harder to bring the economy into balance. All things being equal, that means we'd have to do more with our other tools."
