Fed's Kashkari: Rate hikes could cause a recession

The Wall Street Journal (WSJ) reports additional comments delivered by the Minneapolis Fed president Neel Kashkari over a telephonic phone interview held earlier today.

Key Points:

Next year's expected policy path is a risky situation for the committee.

Concerned about what the bond market is telling us.

Fed's "hawkish" policy is depressing long-dated yields by convincing investors that inflation will remain low for a long time.

Fed runs a risk of setting in motion a process where inflation won't return to its target.

Many Fed officials are counting on faith to deliver the outcome they want to see.