Minneapolis Federal Reserve President Neel Kashkari said Friday he could back another 75bp interest-rate hike in July given inflation pressures, but that it may be more prudent to move by 50bps instead.
"Uncertainty about how much tightening will be needed leads me to be cautious about too much more front-loading," he said in an article posted on the regional Fed's website. While Kashkari has been seen as a more dovish FOMC member, he said recent inflation data has been troubling and the future path is tied to hard-to-predict developments with supply chains.
The Fed may need to hike by more than the 300bps done in the 1994 cycle, Kashkari said. Officials may need to press on as housing inflation takes hold, Fannie Mae's chief economist has told MNI. (See: MNI INTERVIEW:Housing Cost Lag To Drive Inflation As Fed Hikes)