Fed’s Kashkari: Inflation Remains Above 2%, Must Return to Target

Fed’s Kashkari Says Inflation Above Target, Further Action May Be Needed

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, issued a clear signal Thursday night that US inflation remains above the Fed’s 2% target and emphasized the central bank’s commitment to restoring price stability.

“Inflation is above 2%, and we must bring it back to target,” Kashkari said, underlining the Fed’s persistent concerns about sticky price levels.

What This Means for Monetary Policy

Kashkari’s comments suggest that the Fed remains vigilant and may consider keeping interest rates elevated or even tightening further if inflation fails to decline consistently. Markets are now weighing whether rate cuts expected later in the year may be delayed.

Inflation Outlook and Fed's Next Moves

While recent data has shown a gradual cooling in inflation, it has not yet returned to the 2% benchmark. This keeps Federal Reserve policymakers cautious about easing too soon.

For related analysis, visit our page on Fed interest rate forecasts and US inflation trends.

Key Takeaways

• Inflation remains above the 2% Fed target
• Fed officials, including Kashkari, signal continued policy discipline
• Market expectations for rate cuts may shift based on upcoming data