Fed official Kashkari expects only one rate hike in 2026 due to inflation concerns. According to Fed official Kashkari's statement on June 26, he expects the Fed to raise interest rates once this year and keep rates unchanged in 2027, citing broad inflationary pressures. In a Friday interview, Kashkari said: "I am worried about inflation, which reflects signs of a broadening range of inflationary pressures in the economy, not just related to Middle East geopolitics." Data released earlier this week showed that the May PCE inflation rate was 4.1% year-over-year, the largest increase since April 2023. In the dot plot released by the Fed last week, half of the officials who submitted forecasts expect at least one rate hike this year.