Deep Tide TechFlow message: On May 03, Minneapolis Fed Chair Kashkari said that, as the war disrupts supply chains and raises inflation pressures, the Federal Reserve “may need to raise interest rates” in certain circumstances.

Kashkari said that the longer the war lasts, the greater the inflation pressure; even if the conflict ends immediately, supply chain recovery may still take several months. He emphasized that the Federal Reserve’s core challenge at present is “the highly uncertain inflation path,” so policymakers need to remain open-minded about the future interest rate path.

In addition, he said he does not believe the level of U.S. government debt has become an “immediate crisis,” and he said he is looking forward to working with the Federal Reserve Board nominee Kevin W. Warsh, and is willing to take seriously some of the concerns he has raised.