Kashkari, a 2026 FOMC voting member and president of the Minneapolis Fed, told
CNBC on Wednesday the Fed should begin gradually raising rates to reduce
inflation and avoid larger hikes later. He was one of three FOMC voters last
week who supported a 25bp increase. Kashkari said strong corporate profits and
resilient consumer and labor conditions show no evidence that policy is
meaningfully restrictive, arguing for small, incremental hikes rather than
Aggressive tightening if inflation becomes entrenched. He said September action
is uncertain and will be data-dependent. He added that Fed Chair Kevin Warsh has
not pressured him, telling him to do what he thinks is right for the economy.
