Kashkari Sounds Alarm on Spreading Inflation Pressures

Minneapolis Fed President Neel Kashkari expressed concern over inflation spreading beyond oil prices into the broader US economy. In an interview, he stated that inflation pressures are appearing in services, not just items directly affected by conflict in the Middle East or tariffs.

Kashkari was part of the Federal Reserve's decision to raise its benchmark interest rate by 0.25 percentage point at the FOMC meeting on September 15-16. This move aims to curb inflation, which has been above the Fed's 2% target for more than five years.

Kashkari was relatively upbeat about the US economy, citing its resilience despite geopolitical tensions and trade issues. He emphasized that policymakers have the tools to bring inflation back down to target.