Kashkari Reiterates Support for Rate Hike Amid Ongoing Trade Tensions

Minneapolis Federal Reserve President Neel Kashkari said he doesn't expect inflation to return to the Fed's 2% target on its own without further monetary tightening. In an interview with CBS, Kashkari reiterated his support for a quarter-point rate hike at the July meeting and didn't rule out another increase in September.

Kashkari believes that after five consecutive years of above-target inflation, the Fed needs to remain open-minded and await new data before making any decisions. He currently lacks confidence that prices have returned to a downward trajectory toward 2%.

The Fed's next meeting is scheduled for September 15-16. In terms of trade dynamics, Kashkari warned that ongoing tariff wars, particularly with Canada, could prolong price pressures and extend the inflationary impact.