Minneapolis Federal Reserve President Neel Kashkari expressed his concerns on Tuesday about whether the central bank’s measures to combat inflation have been enough.
Evaluating Progress
During a discussion at the APi Group’s Global Controllers Conference, Kashkari shared his perspective on the progress made thus far: “Inflation is coming down. We have made progress and good progress. I feel good about that. It’s still too high.”
However, he raised a crucial question: “The question on my mind is, have we done enough to actually get inflation all the way back down to our 2% target? Or do we have to do more?”
Kashkari’s Role
As a voting member of the Federal Reserve’s interest-rate committee this year, Kashkari’s insights carry significant weight. His views on inflation and monetary policy influence decision-making within the central bank.
Recent Actions
In July, the Fed implemented a 25 basis points increase in its benchmark interest rate, setting it between 5.25% and 5.5%. Looking ahead, the central bank has indicated a potential for one additional rate hike in the coming months.
Market Expectations
Meanwhile, traders in the derivatives market anticipate a pause in the Fed’s rate adjustments at its upcoming meeting in late September. This perception aligns with the current market sentiment.
Market Reaction
On Tuesday, both the Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) experienced declines. Additionally, the yield on the 10-year Treasury note (BX:TMUBMUSD10Y) rose to 4.19%.
Stay tuned for further developments as the Federal Reserve continues its efforts to balance inflation and economic stability.
