Fed's Kashkari: Don't know how high rates need to go, but will take necessary steps to bring down inflation.

date
20:42 01/10/2026
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GMT Eight
Minneapolis Federal Reserve President Neel Kashkari said he currently cannot determine how high interest rates need to be raised to curb prices, adding that after five years of supply shocks, it is the Fed's job to bring inflation down.
Minneapolis Fed President Neel Kashkari said he can't yet judge how high interest rates need to go to restrain prices, adding that after five years of supply shocks, it's the Fed's job to bring inflation down. "We will do what we need to do to get inflation back down to target," Kashkari said in an interview Thursday. "Now, the question ultimately is" how high rates need to go, "and I don't have the answer to that," he said. Policymakers voted unanimously last month to raise the benchmark rate, the first increase in nearly three years. The dot plot released after the meeting showed most officials expect the Fed to raise rates at least once more this year. New York Fed President John Williams said Tuesday that after last month's rate hike, there is no need to continue raising rates immediately. As a result, investors lowered their expectations for a Fed rate hike at the October meeting. Inflation data released Wednesday also showed a key gauge of underlying prices rose less than expected last month. But according to fed funds futures, the market still expects one more rate hike before the end of the year. Kashkari was one of three Fed officials who opposed the decision to hold rates steady in July, preferring a 25 basis point hike at that meeting. The Minneapolis Fed president said earlier this week that inflation is still too high and that he hopes the Fed can curb price increases through modest adjustments.