Kashkari Pushes for Immediate Rate Hikes to Combat Persistent Inflation

Minneapolis Federal Reserve Bank president Neel Kashkari believes that the US central bank should start raising interest rates incrementally to curb inflation. In an interview with CNBC, Kashkari stated that 'now is the time to start slowly moving up as we get more data in.'

Kashkari was one of three Fed officials who dissented from the decision to hold interest rates steady at last week's policy meeting. He had preferred a quarter percentage point rate hike instead.

The Minneapolis Fed chief warned that policymakers might have to raise rates more aggressively if they wait too long and high inflation becomes entrenched. Kashkari is unsure what policy action will be appropriate at the Fed's next meeting in September, as he wants to see incoming data on the economy.

Kashkari did not rule out the possibility of raising interest rates three times before the end of the year if inflation continues to move sideways or worsens. He emphasized that 'if inflation continues to move sideways or even get worse from here, then I think we're going to have to start gradually adjusting interest rates to bring things back down.'