Kashkari Backs 25-Basis-Point Rate Hike as U.S. Inflation Stays Near 3.6%
Updated
Updated · CNBC · Sep 20
Kashkari Backs 25-Basis-Point Rate Hike as U.S. Inflation Stays Near 3.6%
3 articles · Updated · CNBC · Sep 20
Summary
Kashkari said inflation remains too high across the U.S. economy, arguing price pressures extend well beyond the recent oil shock into services and other sectors.
A quarter-point increase last week lifted the Fed's policy rate to 3.75%-4.00%, a move Kashkari said was needed even though higher rates cannot reopen the Strait of Hormuz or lower crude prices directly.
Kashkari had dissented at the prior meeting in favor of a hike when the FOMC held rates steady, underscoring how his stance has shifted into the committee's unanimous decision.
Warsh struck a similar tone after Wednesday's meeting, estimating the Fed's preferred inflation gauge was running around 3.6% in August, still far above the central bank's 2% target.