Minneapolis Fed President Neel Kashkari says he expects a rate hike this year - CNBC
Minneapolis Fed President Neel Kashkari has revised his economic outlook, now expecting one interest rate hike this year instead of a cut, citing persistent inflation. He attributes the inflation, which remains above the Fed's 2% target, to supply dynamics, including energy prices influenced by Middle East tensions and tariffs. Kashkari expressed skepticism that these cost surges will abate soon.
Why it matters
This shift in outlook from a prominent Federal Reserve official signals potential future monetary policy tightening, which could impact borrowing costs, economic growth, and financial markets for businesses and consumers. It also highlights the ongoing challenge of inflation driven by geopolitical factors and supply chain issues.
Minneapolis Federal Reserve President Neel Kashkari said Friday he has changed his outlook and now expects that one interest rate increase will be necessary this year.
CNBC is a major financial news outlet, and the article reports direct quotes and factual economic data without overt editorializing or partisan framing.
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