Fed's Kashkari says 'now is the time to start slowly moving' rates up
Federal Reserve official Neel Kashkari has advocated for a gradual increase in interest rates to combat persistent inflation. He argues that current economic data does not support the view that monetary policy is sufficiently restrictive.
Why it matters
Signals potential shifts in US monetary policy that could impact inflation, corporate earnings, and consumer borrowing costs.
Minneapolis Federal Reserve President Neel Kashkari said Wednesday that he thinks higher interest rates are needed now to bring down inflation and avoid more drastic increases later.
In a CNBC interview, the central bank official called for a gradual approach that could start in September, though he did not commit to a timetable.
Kashkari was one of three dissenters at last week's Federal Open Market Committee meeting who wanted a quarter percentage point rate hike. However, the other nine voters disagreed, voting to hold the benchmark funds rate in a range between 3.5%-3.75%.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in