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2026-09-21 08:52:10
[Hot News Recap: Kashkari Says US Inflationary Pressures Pervade All Sectors of Economy, Supports Last Week's Rate Hike] 1. Minneapolis Federal Reserve President Neel Kashkari stated on Sunday that inflation levels across all sectors of the US economy are too high, and not solely due to rising oil prices. Speaking on Fox News, he said that even excluding volatile energy and food prices, inflation remains excessive based on economic trends. 2. Kashkari supports the unanimous rate hike decision passed last week. At a previous meeting, he was one of three dissenting officials advocating for a rate hike. He emphasized that the Fed's responsibility is to bring inflation back to its 2% target, and that no interest rate policy will force the reopening of the Strait of Hormuz or lower oil prices. 3. He further pointed out that the inflation felt by Americans daily extends far beyond oil prices, permeating all aspects of the economy, particularly the service sector. The Fed has the tools to bring inflation back to its target, but also hopes to receive assistance from other government departments or other sectors of the real economy. 4. Kashkari's remarks echo those of Fed Chairman Warsh after Wednesday's meeting. Warsh stated at the time that, whether measured by 6-month or 12-month periods, too many categories of inflation were still exceeding 3%. 5. Kashkari also stated that despite tariffs, trade wars, and the conflicts in Ukraine and Iran, the US economy remained quite strong, demonstrating remarkable resilience, and productivity showed signs of improvement. He hoped that as some conflicts gradually receded into the background, economic growth would truly take over and could potentially lower inflation, making the Fed's job much easier.
