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Minneapolis Fed President Neel Kashkari says he expects a rate hike this year
CNBC • • general
Key Points:
- Minneapolis Federal Reserve President Neel Kashkari has revised his outlook, now expecting one interest rate increase by the end of the year due to ongoing inflation pressures.
- Kashkari cited persistent inflation driven by energy price surges linked to Middle East tensions and other supply-side factors, including tariffs and disruptions in fertilizer supply.
- Recent data shows headline inflation at 4.1%, the highest since April 2023, and core inflation at 3.4%, both well above the Fed's 2% target.
- Kashkari expressed skepticism about a lasting peace in the Middle East, which contributes to uncertainty and caution regarding inflation trends.
- Other Fed officials have mixed views on inflation and rate policy, with New York Fed President John Williams optimistic about easing inflation, while Chicago Fed President Austan Goolsbee remains cautious.
