Fed’s Kashkari says inflation is still too high in ‘all aspects’ of US economy
Despite the high inflation, he said the American economy has been very resilient
Federal Reserve President Neel Kashkari stated on Sunday that inflation remains too high across all sectors of the US economy, not just rising oil prices. Despite the recent interest rate hike to curb inflation, Kashkari emphasized that the economy has shown remarkable resilience. He supported the unanimous decision to raise rates by a quarter percentage point to 3.75 to 4 percent, noting that this aligns with projections from the majority of Federal Open Market Committee members.
Although crude oil prices surged due to regional conflicts, Kashkari clarified that interest rate adjustments cannot influence oil prices directly. He stressed that the inflation felt by Americans extends beyond energy costs, permeating various sectors, including services. The Fed's role is to bring inflation down to its 2 percent target, and Kashkari believes additional support from other government sectors could aid in this endeavor.
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