Kashkari Warns Inflation Persists Across US Economy Despite Rate Hikes

Neel Kashkari, President of the Minneapolis Federal Reserve Bank, has expressed concerns about inflation in the US economy. According to him, inflation remains too high across all sectors of the economy, not just due to rising oil prices.

Kashkari made these comments during an appearance on Fox News' 'Sunday Morning Futures.' He supported the recent decision by the Federal Reserve to raise its key interest rate by 0.25 percentage points, bringing it to a range of 3.75-4.00%.

This move was unanimous among Fed policymakers, with all but two officials expecting at least one more 0.25 percentage-point rate hike by the end of this year. Rate futures pricing suggests there's a roughly two-thirds probability that rates will stand at 4.00-4.25% by the end of 2026.

Kashkari emphasized that the Fed's task is to bring inflation back down to its 2% target, but interest rates cannot directly lower oil prices or reopen the Strait of Hormuz.