MNI BRIEF: Fed Must Do More With Energy Supply Tight-Kashkari

The Federal Reserve needs to do more to pull down inflation fed by energy prices because it appears that supplies will remain tight, Minneapolis President Neel Kashkari said Friday at a conference he co-hosted with the Dallas Fed.

“Inflation is much too high, energy is a big part of that, and we at the Federal Reserve need to bring inflation down, and we will bring inflation down, I’m confident of that,” Kashkari said.

“It doesn’t appear that there are any short-term fixes to bring energy prices back down on their own on the supply side, which means that we will probably have to carry more of the load through monetary policy in bringing demand down,” he said. During an earlier introduction he said “I hope we have to do less.” Richmond Fed President Tom Barkin told MNI last week he's like rates to move to neutral as fast as possible.