MNI BRIEF:Kashkari-Hikes Past 4.5% Next Year If CPI Stubborn

Minneapolis Federal Reserve President Neel Kashkari said Tuesday he would back raising interest rates beyond his base case for going to about 4.5% early next year if core inflation remains stubborn.

There’s little reason to stop hiking “if we don’t see progress in underlying inflation,” Kashkari said. “If that doesn’t happen I don’t see how we could stop.” Earlier he said it's far too soon to consider pausing interest-rate hikes given a strong job market and service price inflation that might still be worsening.

High inflation has become entrenched and it will take months if not another year for tighter monetary policy and supply-side relief to change those dynamics, Atlanta Fed economist Brent Meyer told MNI Thursday. (See: MNI INTERVIEW: Entrenched U.S. Inflation To Linger-Fed's Meyer)