Kashkari Warns US Economy Suffering from Broad-Based Inflation

Minneapolis Federal Reserve President Neel Kashkari emphasized that inflation is too high across various sectors of the US economy, not just in rising oil prices. Speaking on Fox News' 'Sunday Morning Futures', he stated that even if energy and food costs are stripped out, inflation remains a concern.

Kashkari supported the recent interest rate hike to 3.75%-4.00% and noted that it's the Federal Reserve's job to get inflation back down to its 2% target. He acknowledged that there's nothing the Fed can do with interest rates to immediately bring down oil prices.

Kashkari's concerns echo those voiced by Fed Chairman Kevin Warsh, who estimated that inflation was likely around 3.6% in August, according to the gauge used by the Fed. This figure will be officially released later this month.