US Inflation Still Too High Despite Recent Rate Hike

Minneapolis Federal Reserve President Neel Kashkari said in an interview that US inflation remains too high, even after removing volatile energy and food prices. This assessment comes despite a recent interest rate hike to 3.75%-4.00%. Kashkari's comments align with those made by Fed Chairman Kevin Warsh, who estimated that inflation is around 3.6% in August.

Kashkari emphasized that the American people are feeling inflation effects across various sectors of the economy, not just in oil prices. He stated that while interest rates can help bring down inflation, they cannot address issues like the Strait of Hormuz or oil price fluctuations caused by global conflicts.

The Federal Reserve's primary goal is to return inflation to its 2% target. To achieve this, Kashkari said that tools beyond interest rates will be necessary and that there may need to be help from other parts of government or the real economy.