MNI BRIEF: 'Concerning' CPI Pushes Back Cuts - Fed's Kashkari

Minneapolis Fed President Neel Kashkari said Wednesday the "concerning" CPI inflation report means the central bank will likely have to wait longer before reducing interest rates.

"My colleagues and I have all said we will cut interest rates once we get convinced that inflation is well on its way back into our 2% target," he told PBS Newshour. "We were waiting to see some more data to get that confidence. The recent data doesn't give me that confidence yet. So, for me personally, I think we have to wait a while longer to see more progress." Kashkari said he penciled in 2 interest rate cuts at the March FOMC meeting, conditioned that inflation continues to move toward the Fed's 2% target. (See: MNI INTERVIEW: 'Nothing Good' In CPI - Ex-Fed Board's Kamin)

"The longer that inflation just moves sideways and doesn't actually move back down, that would make me say we should pause indefinitely until we see that confidence that inflation is beat," he said, noting that the labor market continues to appear to be very healthy and robust. "We are in a good position to take our time and get this data."