Fed's Kashkari reportedly says inflation is still too high across the U.S. economy
Minneapolis Fed President Neel Kashkari says U.S. inflation remains too high and is broad-based, extending beyond energy price increases into services and other economic sectors. This persistence complicates the Federal Reserve's effort to hit its 2 percent target. Markets widely expect the Fed to raise interest rates by 25 basis points this Wednesday, which would move the benchmark rate to 3.75%-4.00%. This potential tightening is driven by stubborn inflation and oil prices exceeding $100 a barrel.
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- ✓ Minneapolis Fed President Neel Kashkari stated that U.S. inflation remains too high and is broad-based.
- ✓ Kashkari noted that inflation pressures extend beyond energy prices into services and other parts of the economy.
- ✓ The Federal Reserve has a target of 2 percent for price growth.
What changed
Kashkari specified that inflation pressures are broad-based and extending into services, and markets now expect a 25 basis point rate hike this Wednesday.
Live updates
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Kashkari warns of broad-based inflation ahead of expected Fed rate hike
Minneapolis Fed President Neel Kashkari says U.S. inflation remains too high and is broad-based, extending beyond energy price increases into services and other economic sectors. This persistence complicates the Federal Reserve's effort to hit its 2 percent target. Markets widely expect the Fed to raise interest rates by 25 basis points this Wednesday, which would move the benchmark rate to 3.75%-4.00%. This potential tightening is driven by stubborn inflation and oil prices exceeding $100 a barrel.
Why it matters
The Federal Reserve uses interest rate adjustments to control price growth. Prolonged restrictive policy and slowing growth typically negatively impact the S&P 500.
What is confirmed
- Minneapolis Fed President Neel Kashkari stated that U.S. inflation remains too high and is broad-based.
- Kashkari noted that inflation pressures extend beyond energy prices into services and other parts of the economy.
- The Federal Reserve has a target of 2 percent for price growth.
Still unconfirmed
- Restrictive policy rates and slowing growth are usually a bad sign for the S&P 500.
What to watch next
- The Federal Reserve's official interest rate decision this Wednesday
- Updated inflation data for the services sector
confidence 90%Sources used for this update (3)
- finance.yahoo.com — The Fed Is Fighting Inflation Again. History Says Trouble ...
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- economictimes.indiatimes.com — neel foods: Latest News & Videos, Photos about neel foods ...
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Minneapolis Fed President Kashkari warns inflation remains too high across U.S. economy
Minneapolis Federal Reserve President Neel Kashkari states that inflation remains too high across the U.S. economy as the central bank attempts to return price growth to its 2 percent target. Kashkari previously noted that while recent figures were cooler than economists predicted, price growth remains a concern. Other Fed officials have adopted a more hawkish tone ahead of the October FOMC meeting, with some warning that inflation has stayed elevated for years. This persistent inflation has led to concerns that consumers may now expect stubbornly high prices.
Why it matters
The Federal Reserve is an independent central bank created in 1913 to provide a stable monetary system. It uses interest rate adjustments to manage inflation and economic stability. The central bank has missed its long-term two percent inflation target for more than five years.
What is confirmed
- Minneapolis Fed President Neel Kashkari says inflation remains too high across the U.S. economy.
- The Federal Reserve has a long-term inflation target of 2 percent.
- The Federal Reserve is the central banking system of the United States.
Still unconfirmed
- The US central bank has missed its long-term two-percent target for inflation for more than five years.
- Fed officials are adopting a more hawkish tone ahead of the October 2026 FOMC meeting.
- U.S. inflation has stayed elevated for years, leading to fears that consumers expect stubbornly high prices.
What to watch next
- October FOMC meeting results
- Release of Federal Reserve minutes
- Upcoming speeches from key Federal Reserve figures
confidence 90%Sources used for this update (17)
- www.federalreserve.gov — Federal Reserve Board - Home
- www.fedex.com — Track & Ship Online or Find Nearby Locations | FedEx
- en.wikipedia.org — Federal Reserve - Wikipedia
- fred.stlouisfed.org — Federal Reserve Economic Data | FRED | St. Louis Fed
- www.frbservices.org — Home | Federal Reserve Financial Services
- spectrumlocalnews.com — Fed's Warsh says interest rates may need to be raised
- www.thedailystar.net — US Fed chair says inflation is elevated and 'concerning'
- www.fedfundrate.org — Fed Funds Rate Today | Real-Time Fed Funds Rate Updates
- www.thedailystar.net — US Fed raises rates to tackle 'too high' inflation, irking ...
- pro.thestreet.com — The Week Ahead: Do We Finally Get the Broadening?
- indiawest.com — Neel Kashkari Says US Inflation Remains Too High Across Economy
- economictimes.indiatimes.com — neel kashkari comments: Latest News & Videos, Photos about ...
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Kashkari warns inflation remains too high despite cooler data
Minneapolis Federal Reserve President Neel Kashkari says inflation remains "too high" following August data from the Bureau of Economic Analysis. Speaking with CNBC's Steve Liesman, Kashkari noted that price growth is a concern even though recent figures arrived cooler than economists predicted. To bring inflation back to the central bank's 2 percent target, Kashkari expects possible rate hikes to reduce inflationary pressures amid ongoing economic uncertainty.
Why it matters
The Federal Reserve uses interest rate adjustments to control price stability. Current inflation remains above the 2 percent target. This creates a tension between maintaining economic resilience and curbing price growth.
What is confirmed
- Minneapolis Federal Reserve President Neel Kashkari stated inflation is "still too high" during an interview with CNBC's Steve Liesman.
- August data from the Bureau of Economic Analysis showed annual inflation remained above the Federal Reserve's 2 percent target.
- Kashkari expects possible rate hikes to reduce inflation and return it to the target.
- Recent inflation data came in cooler than economists had predicted.
Still unconfirmed
- Neel Kashkari warned that artificial intelligence may impact inflation.
What to watch next
- Future Bureau of Economic Analysis inflation reports
- Federal Reserve interest rate decision meetings
confidence 100%Sources used for this update (7)
- www.straitstimes.com — US Federal Reserve plans more rate hikes to curb inflation
- www.cnbc.com — Fed's Kashkari says inflation is 'still too high' even after ...
- finance.yahoo.com — Fed's Kashkari Says Inflation Still Too High Despite Cooler ...
- stocktwits.com — RKLB Stock’s 2-Week Rally Is On The Line — But Cathie Wood’s ARK Is Loading Up As Wall Street Sees ....
- finance.yahoo.com — Fed’s Kashkari says inflation ‘still too high’ despite lower ...
- themortgagepoint.com — Minneapolis Fed’s Kashkari: Inflation is ‘Still Too High’
- en.fnnews.com — Kashkari: "Inflation Remains Too High"—Warns of AI ...
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Fed's Kashkari says US inflation remains too high
Minneapolis Fed President Neel Kashkari stated that inflation is still too high across the US economy, affecting all sectors beyond the initial oil shock. Despite this, Kashkari describes the American economy as remaining very resilient. The current inflation rate is about 3%.
Why it matters
Kashkari's comments impact expectations for the Federal Reserve's next interest rate move. The US economy has shown resilience despite ongoing inflationary pressures and global events. Inflation data and labor market reports are influencing economic outlooks and Fed expectations.
What is confirmed
- Inflation is still too high, about 3%
- The American economy remains very resilient
Still unconfirmed
- Traders see about a 35% chance of an October rate hike
What to watch next
- Core PCE data release
- Micron earnings report
- Federal Reserve's next interest rate decision
confidence 75%Sources used for this update (5)
- www.zerohedge.com — US Futures, Treasuries Flat Ahead Of Core PCE, Micron Earnings | ZeroHedge
- www.tmgm.com — Fed’s Kashkari questions policy tightness as economy stays strong
- capwolf.com — Kashkari On Inflation Jobs And The Next Fed Rate Move
- economictimes.indiatimes.com — us economy latest News and Updates from The Economic Times ...
- www.theguardian.com — Good news in US inflation report boosts chances Fed won’t ...
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Kashkari Warns Inflation Spread Across All US Economic Sectors
Minneapolis Fed President Neel Kashkari states that inflation remains too high and has permeated all corners of the US economy. He warns that price pressures now extend beyond the initial oil shock and affect all sectors. Despite these inflationary pressures and ongoing wars, Kashkari describes the American economy as remaining very resilient.
Why it matters
The Federal Reserve monitors sector-wide inflation to determine if price hikes are transitory or systemic. Widespread inflation typically requires more aggressive monetary policy to stabilize the economy.
What is confirmed
- Minneapolis Fed President Neel Kashkari says inflation remains too high.
- Kashkari states that inflation has reached all corners and sectors of the US economy.
- Kashkari warns that inflation has spread beyond the oil shock.
Still unconfirmed
- The American economy remains very resilient despite wars.
- Kashkari made these remarks during a Fox News interview.
What to watch next
- Upcoming Federal Open Market Committee interest rate decisions
- New Consumer Price Index data for sector-specific inflation
- Further public commentary from other Federal Reserve regional presidents
confidence 90%Sources used for this update (7)
- Bloomberg.com — Fed’s Kashkari Says Inflation Reaching All Corners of US Economy
- Investing.com — Minneapolis Fed’s Kashkari says inflation remains too high
- cnbc.com — Fed's Kashkari reportedly says inflation is still too high across the U.S. economy
- Seeking Alpha — Kashkari warns inflation has spread beyond oil shock
- Forex Factory — Fed's Kashkari: American economy remains very resilient despite wars
- TradingView — Fed's Kashkari says inflation goes beyond oil prices, according to Fox News interview
- qz.com — Minneapolis Fed's Kashkari says inflation is too high across all sectors
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