🔴Fed Kashkari: Expected to have 1 interest rate hike this year


Minneapolis Fed President Neel Kashkari just reversed his stance, from forecasting 1 rate cut (March) to forecasting 1 rate hike by end of 2026.
Kashkari, previously seen as one of the most dovish Fed members, has now turned hawkish. He believes inflation comes not only from oil prices but also from tariffs pushing up import prices, disruption of fertilizer supply through Hormuz, and massive CapEx into AI driving up prices in many sectors. For 2027, he forecasts rates to remain unchanged rather than cut.
NY Fed President Williams believes current policy is sufficiently tight to bring inflation back to 2%, thanks to the strong US economic recovery and stable labor market.
Currently, CME FedWatch prices in ~76% probability of at least 1 rate hike in December.
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