Fed's Kashkari Calls for Immediate Rate Hikes to Combat Inflation, Sees Possible Three Hikes by Year-End

According to Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, the U.S. central bank should begin raising interest rates immediately to combat persistently elevated inflation. Kashkari warned that if policymakers delay too long, high inflation could become entrenched, potentially forcing more aggressive rate hikes. He said he remains uncertain about the policy action the Fed should take at its September meeting and hopes upcoming economic data will clarify the situation. When asked if three rate hikes by year-end were possible, Kashkari stated: "It is not impossible."
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