Kashkari Warns Inflation Remains Too High Across US Economy

Minneapolis Federal Reserve President Neel Kashkari said on Sunday that inflation remains too high across all sectors of the US economy, not just in rising oil prices. He emphasized that even when stripping out energy and food costs, which are volatile, inflation is still a concern.

Kashkari's comments came after the Federal Reserve raised interest rates by a quarter percentage point to 3.75%-4.00% last week, with all but two Fed policymakers projecting at least one more rate increase this year.

According to projections released alongside the rate hike decision, there is a strong likelihood of the policy rate climbing by another quarter point beyond 2026 and reaching the 4.00% to 4.25% range by mid-2027.