Fed’s Kashkari leaves door open for higher rates amid inflation battle - Bloomberg

Investing.com -- Federal Reserve Bank of Minneapolis President Neel Kashkari emphasized Thursday that the central bank remains committed to restoring price stability, even as the ultimate terminal rate necessary to tame inflation remains uncertain. Speaking in an interview on Bloomberg Television, Kashkari acknowledged that policymakers must take whatever actions are required to return inflation to its 2% target following five years of persistent supply shocks.

His comments follow a unanimous vote by Fed officials last month to raise the benchmark interest rate for the first time in roughly three years, with post-meeting projections signaling at least one additional increase before year-end. Recent economic data and policymaker commentary have fueled ongoing debate over the central bank's near-term policy trajectory.

Market expectations for an immediate rate increase at the Fed’s October policy meeting eased earlier this week after New York Fed President John Williams indicated a lack of urgency for further tightening. That sentiment was reinforced by Wednesday’s inflation report, which revealed that a key measure of underlying price growth rose less than anticipated last month.

Despite the cooler inflation print and dovish commentary from other officials, futures markets continue to price in one final quarter-point hike before the end of the year. Kashkari himself has favored a more aggressive stance, having dissented alongside two colleagues against the decision to pause rate hikes in July in favor of a quarter-point increase.

The Minneapolis Fed chief previously noted that elevated price pressures demand continued vigilance, though he expressed hope that modest policy adjustments could ultimately suffice. Investors now face a nuanced landscape as the central bank balances emerging signs of disinflation against lingering price risks.

Original Article

You May Also Be Interested In

• US Treasury: 'Authorizing Wind Down Activities...the Offloading of Cargo Involving Certain Persons or Vessels Blocked on October 21, 2026'
• Dow beats third quarter estimates on higher prices
• Rollins falls 7% on third quarter earnings and revenue miss