Kashkari Warns US Inflation Remains High Across Sectors Despite Interest Rate Hike

Minneapolis Federal Reserve Bank President Neel Kashkari stated that US inflation remains high across various sectors of the economy, even when oil price pressures are excluded from the calculation. This comes after the Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4.00% at last week's policy meeting.

Kashkari emphasized that inflationary pressures are not solely coming from highly volatile energy and food prices, but also remain broad-based across the services sector. He said, 'The inflation that Americans experience every day goes far beyond just the price of oil.'

The comments align with those made by Fed Chair Kevin Warsh, who estimated that inflation, based on the measure used by the Fed to achieve its 2% target, stood at around 3.6% in August.