US inflation remains stubbornly high even after excluding swings in fuel and food prices. Minneapolis Fed President Neel Kashkari said in an interview on Fox News that underlying price pressures remain intact, warning the central bank will need to keep cooling the economy.
Kashkari fully supported the Federal Reserve’s recent 25‑basis‑point hike, which pushed the policy rate to a 3.75%–4.00% range. He framed the move as a personal win: at the prior meeting, he was one of three hawks who voted to tighten monetary policy, while a majority opted to hold interest rates steady.
Officials at the Fed continue to seek a delicate balance between taming persistent inflation and avoiding undue harm to the economy. Kashkari said he expects other sectors to cool naturally as conditions normalize. However, he stressed that the pace of disinflation so far is insufficient to take price stability concerns off the table.
