Kashkari Warns US Inflation Remains Too High Across All Sectors

Minneapolis Federal Reserve President Neel Kashkari said on Sunday that inflation remains too high across all sectors of the US economy, not just in rising oil prices. Even when excluding energy and food, which are volatile, inflation is still a concern, he stated.

Kashkari supported the recent decision to raise interest rates by a quarter percentage point to 3.75%-4.00%. He was one of three officials to dissent at the Fed's prior meeting in favor of a hike when the majority of the Federal Open Market Committee opted to leave rates unchanged, as reported last week.

The current inflation rate is above the Fed's target of 2%, and Kashkari emphasized that the central bank's job is to bring it back down. He noted that interest rates cannot address external factors such as the Strait of Hormuz crisis or oil prices but can be used to control domestic inflation.

Kashkari's comments echo those of Fed Chairman Kevin Warsh, who estimated that inflation was around 3.6% in August and said too many categories are still posting increases above 3 percent on a 6- and 12-month basis.