Fed's Kashkari says inflation remains high across economy despite energy price spikes
Minneapolis Fed President Neel Kashkari told Fox News that inflation is still elevated in all sectors of the U.S. economy and supported the recent quarter-point rate hike, noting the Fed’s tools can address broader price pressures.
Minneapolis Federal Reserve President Neel Kashkari said inflation remains too high across all sectors of the U.S. economy, not just in volatile energy and food prices. He made the remarks on Fox News' "Sunday Morning Futures" after the Fed voted unanimously to raise the policy rate by a quarter percentage point to a range of 3.75%-4.00%.
Kashkari noted that the Fed’s mandate is to bring inflation back to its 2% target and that interest-rate policy is the primary tool, even as oil prices have surged amid heightened Middle East tensions. > "The inflation that the American people are feeling every day is much beyond just oil prices. It's in all aspects of the economy. It's in the services sector, for example, widely. So we have tools to bring that back down," he said.
He added that the broader economy has shown resilience, with growth remaining strong despite trade disputes and geopolitical conflicts. > "The American economy has been very resilient," Kashkari said, expressing hope that reduced conflict-related pressures will allow growth to support a decline in inflation.
The Fed’s latest projections indicate that most policymakers anticipate at least one more quarter-point rate increase this year, and market futures suggest a two-in-three chance the policy rate will end 2026 in the 4.00%-4.25% range, with further hikes possible by mid-2027.