Kashkari Warns Inflation Spreads Beyond Oil Prices, Fed Raises Rates Again

Minneapolis Federal Reserve President Neel Kashkari expressed concern that inflation has spread beyond energy markets, citing a broad-based increase in prices across various sectors of the economy. In an interview on Fox News' Sunday Morning Futures, Kashkari emphasized that 'the inflation that the American people are feeling every day is much beyond just oil prices.'

Kashkari's comments came after the Federal Reserve raised its benchmark interest rate by a quarter percentage point to a range of 3.75% to 4%, marking its first rate increase since 2023.

He noted that while the Fed cannot resolve geopolitical disruptions, it can use monetary policy to prevent broader inflation from becoming entrenched. Kashkari warned that delaying action could eventually force the central bank to impose more aggressive tightening.