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Fed's Kashkari says inflation is still too high in 'all aspects' of US economy, in Fox News interview
Reuters • • business
Key Points:
- Minneapolis Federal Reserve President Neel Kashkari stated that inflation remains too high across all sectors of the US economy, not just due to volatile energy and food prices.
- Kashkari supported the recent unanimous Fed decision to raise interest rates by a quarter percentage point to 3.75%-4.00%, and noted that most Fed policymakers expect at least one more rate hike this year.
- He emphasized that the Fed's tools cannot directly address inflation caused by geopolitical events, such as the Middle East conflict driving up oil prices, but inflation is widespread beyond energy costs.
- Kashkari echoed Fed Chairman Kevin Warsh's concerns about persistent inflation, with core inflation measures still above the 2% target, and highlighted the resilience and strong growth of the US economy despite global challenges.
- He expressed hope that as geopolitical tensions ease, economic growth and disinflation will improve, making it easier for the Fed to achieve its inflation goals.
