Fed’s Kashkari: Inflation still too high in ‘all aspects’ of economy
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said inflation remains too high across the economy in an interview Sunday, shortly after the Federal Open Market Committee raised its policy rate. He urged that while the Fed will act with its tools, other parts of government and the private sector should help the economy normalize.
Why It Matters
Kashkari's comments underscore continued Fed concern about inflation even after a recent rate hike, signaling that policymakers view price pressures as broad-based and not confined to volatile energy or food costs — an assessment that influences monetary policy expectations.
Key Facts
- Speaker: Neel Kashkari, president, Federal Reserve Bank of Minneapolis
- Interview: Fox News's 'Sunday Morning Futures' with Jackie DeAngelis
- Headline inflation (CPI), August: 3.4% (annual)
- Core CPI, August: 2.4% (annual, excludes food and energy)
- Fed's inflation target: 2% annual
Neel Kashkari, who leads the Federal Reserve Bank of Minneapolis, told Fox News on Sunday that inflation remains unacceptably high across broad parts of the U.S. economy. He said that even after removing volatile categories such as energy and food, overall inflation levels are elevated and continue to affect Americans’ everyday costs. Annual consumer price inflation was 3.4% in August, while core CPI — which omits food and energy — stood at 2.4% that month. Both measures have remained above the Fed’s 2% objective since March 2021 after peaking at 9.1% in June 2022. Last week the Federal Open Market Committee raised its target range for the federal funds rate by 25 basis points to 3.75%–4.00%, marking the first increase since July 2023. Fed officials said the move was intended to help bring inflation back toward the 2% goal, and the committee’s unanimous vote reflected a view that some accommodation should be withdrawn from financial conditions. Kashkari reiterated that the central bank possesses tools to lower inflation and said it will ‘‘do our part’’ while expressing hope that fiscal authorities and private-sector forces will contribute as the economy returns to more normal functioning. His remarks echoed comments from Fed officials emphasizing a focus on delivering price stability for Americans.
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