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MNI BRIEF: Fed Has ‘More Work To Do’ On Inflation-Kashkari

(MNI) WASHINGTON

The Federal Reserve needs to tighten monetary policy further in order to bring down inflation running near 40-year highs and showing little sign of abating, Minneapolis Fed President Neel Kashkari said Thursday.

“We’re at a time of very high inflation, the Federal Reserve has worked very aggressively to raise interest rates to bring the economy back into balance. We have more work to do,” he said.

Kashkari said a soft landing was more likely if supply chain pressures ease more quickly. “The big questions everybody is asking is, can we achieve a soft landing, can we cool down the inflation without triggering a recession? I hope so. We’re going to try. But we have to bring inflation down.”

St. Louis Fed economist Mark Wright told MNI it’s too soon to say whether inflation has peaked. Kashkari echoed that view: "We’re seeing almost no evidence that underlying inflation has peaked or is trending down."

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

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