Central Banks
Fed Can’t Pause Rate Hikes With Core Inflation Accelerating, Kashkari Says
- Fed needs to see progress on core inflation, Kashkari says
- Minneapolis Fed chief questions whether labor market is tight
Neel Kashkari
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The Federal Reserve can’t pause its campaign of monetary policy tightening once its benchmark interest rate reaches 4.5% to 4.75% if “underlying” inflation is still accelerating, Minneapolis Fed President Neel Kashkari said.
“Core services inflation -- which is the stickiest of all -- keeps climbing, and we keep getting surprised on the upside,” Kashkari said Tuesday during a panel discussion hosted by the Women Corporate Directors Minnesota Chapter. “If we don’t see progress in underlying inflation, or core inflation, I don’t see why I would advocate stopping at 4.5, or 4.75, or something like that.”