Kashkari: Inflation Still Too High Despite Lower PCE Data

Federal Reserve Bank of Minneapolis President Neel Kashkari expressed concerns about inflation during an event in New York City, despite lower-than-expected PCE data. 'Inflation is still too high,' he said, noting that it has been elevated for more than five years.

Kashkari pointed out that annual inflation remained above the central bank's 2 percent target in August, at 3.4 percent according to BEA data. Core prices, which exclude food and energy costs, were up 3 percent year-over-year.

The Minneapolis Fed president emphasized that the U.S. economy is resilient amid shocks from the Iran war and President Trump's tariffs on imports. The country's gross domestic product increased by 2.2 percent annually in the second quarter of this year, according to BEA data.