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Minneapolis Fed President Neel Kashkari, a voting FOMC member in 2026, said that signs of broader inflationary pressure led him to project one rate hike by the end of 2026 in his June forecast, instead of the rate cut he had previously expected.
According to Kashkari, the risks are tied not only to the Middle East but also to broader pro-inflationary factors. Further decisions will depend on incoming macro data. Market summaries of his comments also reflected the view that rates could remain unchanged in 2027.