Minneapolis Fed’s Kashkari says inflation remains too high

Minneapolis Federal Reserve President Neel Kashkari stated on Sunday that inflation continues to be too high throughout the U.S. economy. He argued that price pressures extend beyond the recent impact of higher energy costs. In an interview with Fox News Sunday Morning Futures, Kashkari explained that inflation remains elevated even when volatile food and energy prices are excluded, indicating that underlying price pressures are still a concern for policymakers.

He added that the Federal Reserve would continue its efforts to bring inflation down as economic conditions change. Kashkari defended the Fed's 25-basis-point rate increase last week, which raised the federal funds target range to 3.75%-4.00%. This move marked a change from the previous Federal Open Market Committee meeting, where Kashkari was one of three policymakers who disagreed with a rate increase while the majority chose to leave rates unchanged.

His remarks highlight the challenges the Fed faces in balancing persistent inflation with shifting economic conditions. Kashkari expressed hope for support from other sectors of the economy as conditions stabilize, but maintained that inflation has not yet eased sufficiently to eliminate concerns about price stability.