Fed’s Kashkari says inflation fight takes priority as labor market is ‘in decent shape’
Kashkari said the Fed should keep pressure on inflation as markets price an October rate hike and global energy shocks add risks.
- Minneapolis Federal Reserve President Neel Kashkari said Thursday his priority is bringing down inflation in the U.S., calling consumer prices 'too high' while the labor market remains in 'decent shape.'
- Five years of inflation above the Federal Reserve's 2% target, with headline rates at 3.8% in April, prompted Kashkari's dissent in April against dovish guidance favoring neutral Fed language.
- The Middle East conflict sent an 'inflationary shockwave' across the globe that could persist, with rising energy prices spilling into broader inflation as supply chain normalization takes months.
- Kashkari warned the Fed would respond 'even more aggressively' if inflation expectations unanchor, though he said it is 'far too soon' to predict rate moves despite market bets on October increases.
- The U.S. fiscal position is 'unsustainable' over the long term, while global debt concerns including Japan could keep bond markets volatile as Kashkari monitors Iran negotiations and supply responses.
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Fed’s Kashkari tells CNBC that inflation fight takes priority as labor market is 'in decent shape'
The Minneapolis Fed President warned that persistently high inflation risks becoming embedded in consumer expectations, potentially forcing tougher policy action later.
Fed's Kashkari calls for focus on inflation risk, mum on timing of next rate move
The Federal Reserve must focus on containing inflationary risks that appear to be building, though it was "far too soon" to predict when it could next change interest rates even as markets price in an October increase, Minneapolis Fed President Neel Kashkari said on Wednesday.
Fed Official: Persistent Inflation Could Force Future Rate Hikes - The MortgagePoint
Minneapolis Fed President Neel Kashkari said this week that ultimately, the Fed could undertake a series of rate hikes if inflation pressures related to the turmoil in the Middle East persist with higher oil and gas prices, inflation expectations continuing to climb, and the stock market pushing higher. The Fed and its new Chair, Kevin
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