Kashkari Warns Inflation Persists Across US Economy Despite Interest Rate Hikes

Neel Kashkari, President of the Minneapolis Federal Reserve, stated that inflation remains too high across the US economy. He emphasized that even excluding volatile sectors like energy and food, inflation is still a concern.

Kashkari's comments came after the Fed raised interest rates by a quarter percentage point to 3.75%-4.00%. This move was supported by Kashkari, who dissented at the previous meeting when the majority of the Federal Open Market Committee opted to leave rates unchanged.

The recent escalation of hostilities in the Middle East has contributed to rising crude oil prices. However, Kashkari stressed that inflation is not solely driven by oil prices and affects various sectors, including services.