Kashkari Warns of Widespread Inflation Across US Economy

Minneapolis Federal Reserve President Neel Kashkari emphasized that inflation remains too high across all sectors of the US economy, not just in energy prices. Speaking to Fox News' Sunday Morning Futures, he stated that price pressure has spread into services and broader consumption, even after stripping out volatile categories such as energy and food.

Kashkari supported last week's unanimous decision to raise the federal funds target range by a quarter percentage point to 3.75%-4.00%. He had previously dissented in favor of a hike at the previous meeting when rates were left unchanged.

He noted that all but two policymakers expect at least one more quarter-point increase before the end of this year, with rate futures pricing a two-in-three chance of a 4.00% to 4.25% policy rate at the end of 2026.