Minneapolis Fed President Kashkari said U.S. inflation remains too high and that
pressures have spread beyond the oil-price shock from the Iran war into multiple
sectors. He said consumers’ inflation experience is not just about fuel and that
services are showing inflationary signs. Kashkari reiterated the Fed’s duty to
return inflation to target and said the central bank has the tools to do so. He
was one of three dissenters in July’s decision to hold rates, having favored a
hike and warning that delay could entrench inflation and require more aggressive
tightening. He added the U.S. economy and labor market remain resilient despite
geopolitical and trade pressures and said he hopes fading conflict effects and
stronger growth will speed disinflation and ease Fed policy pressure.
