Key facts
- Minneapolis Federal Reserve President Neel Kashkari said inflation is too high across all sectors of the US economy.
- Kashkari noted that inflation remains elevated even when excluding volatile energy and food prices.
- He supported the Federal Reserve's recent quarter-percentage-point interest rate hike, which brought the target range to 3.75%-4.00%.
- Kashkari previously dissented at the prior meeting, advocating for a rate increase when the majority opted to hold rates steady.
- He expressed concern that delaying action could lead to entrenched inflation requiring more aggressive rate hikes later.
Minneapolis Federal Reserve President Neel Kashkari said on Sunday that inflation is too high and is impacting all sectors of the US economy, not just volatile energy prices. He told Fox News that even after stripping out energy and food, inflation remains elevated.
Kashkari supported the Federal Reserve's recent unanimous decision to raise interest rates by a quarter percentage point, bringing the target range to 3.75%-4.00%. He noted that he was one of three officials who dissented at the prior meeting, having voted in favor of a hike when the majority opted to leave rates unchanged.
In a separate interview with CNBC, Kashkari explained that he does not see evidence that current interest rate levels are significantly restricting economic activity. He argued that it is better to start increasing rates slowly now rather than wait until inflation becomes entrenched, which would necessitate more aggressive action later. He also mentioned that Fed Chair Kevin Warsh had encouraged him to vote according to his economic judgment.