Kashkari Warns of Ongoing Inflation Concerns Amid Strong US Economy

Neel Kashkari, president and CEO of the Federal Reserve Bank of Minneapolis, said inflation is still too high across all sectors of the US economy. In a Fox News interview, he emphasized that even if energy and food prices are stripped out, inflation remains elevated.

Kashkari supported the recent rate hike to 3.75%-4.00% and expects at least one more quarter-point increase this year. Rate futures markets suggest a two-in-three chance of the Fed's policy rate ending in the 4.00% to 4.25% range by 2026.

The Fed aims to bring inflation back down to its 2% target, and Kashkari acknowledged that interest rates alone cannot solve issues like rising oil prices due to Middle East conflicts.