Inflation Still Too High, Says Minneapolis Fed President Kashkari

Neel Kashkari, president of the Federal Reserve's Minneapolis branch, expressed concerns about inflation on Sunday. He stated that despite recent interest rate hikes by the central bank, 'inflation is still too high' and affects various aspects of the economy.

Kashkari pointed out that even if volatile energy prices are excluded, core inflation remains above 2 percent. The current annual inflation rate stands at 3.4 percent, while core inflation has been above the target rate since March 2021, reaching a 40-year high in June 2022.

The Fed's decision to raise interest rates was aimed at supporting a return to its 2 percent inflation target. However, Kashkari acknowledged that the economy still requires additional support from other sectors, including government and private industries, to boost growth.