Kashkari Warns Inflation Pressures Remain High Amid Rate Hikes

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, emphasized the need for the central bank to lower inflation pressures. He stated that 'inflation is still too high' and that monetary policy can work to bring it back to target.

Kashkari expressed his concerns about the recent data, saying that he would not have predicted five years of elevated inflation if asked a decade ago. However, he remains optimistic that the Fed can address this challenge.

The Fed has already raised interest rates by a quarter percentage point to between 3.75% and 4%, aiming to temper inflation pressures. Officials also penciled in one more increase before the end of the year, as forecasted during the September Federal Open Market Committee meeting.