Kashkari Warns of Persistent Inflation Amid Rate Hike

Minneapolis Federal Reserve President Neel Kashkari warned that inflation remains too high across the US economy, not just due to rising oil prices. In an interview with Fox News' 'Sunday Morning Futures', Kashkari emphasized that even if energy and food price increases are stripped out, inflation is still above target.

Kashkari supported the recent unanimous vote by the Federal Open Market Committee to raise interest rates by a quarter percentage point to 3.75%-4.00%. He was one of three officials who dissented at the previous meeting when the majority opted to leave rates unchanged.

According to Kashkari, the inflation Americans feel every day goes beyond oil prices and affects various sectors, including services. He stated that the Federal Reserve has tools to bring down inflation but acknowledged that interest rate adjustments cannot address external factors like the Middle East conflict, which has driven up oil prices.