Kashkari expressed some confidence that inflation will eventually fade but warned that unexpected economic shocks persist. He noted that consumer spending remains strong and the labor market is healthy with an unemployment rate of 4.1%. While he does not know how high interest rates must climb to tame prices, he warned that additional hikes would put uneven pressure on housing sectors already under strain.
Wednesday, October 21, 2026
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Fed's Kashkari Says Monetary Policy Lacks Restraint Despite Cooler Price Data
US Markets20 days ago
The US economy has outperformed analyst forecasts since the September meeting, according to Minneapolis Fed President Neel Kashkari. The Federal Reserve official stated that there is no sense monetary policy is providing much restraint to the economy at present and that financial conditions have not meaningfully tightened. He told CNBC that inflation remains too high even though the latest price growth figures were cooler than economists had predicted.
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