Kashkari Pushes for Immediate Interest Rate Hike to Tame Inflation

Minneapolis Federal Reserve President Neel Kashkari is advocating for an immediate interest rate hike to combat high inflation. Speaking to CNBC, he emphasized that the time has come to start raising rates incrementally as more data becomes available.

Kashkari was one of three Fed officials who dissented from the decision to hold interest rates steady at last week's policy meeting, preferring instead to raise them by a quarter percentage point. He warned that policymakers might have to raise rates more aggressively if they wait too long and high inflation becomes entrenched.

When asked whether the Fed could raise rates three times before the end of the year, Kashkari said it was 'not impossible' but emphasized that he wants to see what incoming data say about the economy. He added that if inflation continues to move sideways or worsen, interest rates will need to be adjusted to bring things back down.

Kashkari also discussed his working relationship with Fed Chairman Kevin Warsh, who has continued the tradition of calling colleagues ahead of Federal Open Market Committee meetings. According to Kashkari, Warsh gave him carte blanche to make decisions based on what he thinks is best for the economy.