Fed's Kashkari States Inflation Remains High Across U.S. Economy
Minneapolis Federal Reserve President Neel Kashkari stated that inflation remains high across all sectors of the US economy, not just due to rising oil prices. He emphasized this during an interview with Fox News' 'Sunday Morning Futures,' noting that even after excluding volatile energy and food costs, core inflation is still too elevated. Kashkari supported a recent decision by the Federal Reserve to raise interest rates by 25 basis points to a range of 3.75%-4.00%, despite having previously dissented in favor of rate hikes when others held back. Kashkari acknowledged that while oil prices are influenced by geopolitical tensions, such as recent hostilities involving the US and Iran near the Strait of Hormuz, these factors fall outside the Fed's control. He stressed the need to bring inflation down using monetary tools toward a 2% target. His comments align with those made earlier by Federal Reserve Chairman Kevin Warsh, who estimated core inflation at around 3.6% in August.
Topics: economic policy Federal Reserve inflation interest rates oil prices