Fed's Kashkari: Inflation Still Too High Despite Softer PCE Data
Minneapolis Fed President Neel Kashkari says inflation remains elevated even as the latest PCE reading came in softer than expected.
Minneapolis Federal Reserve President Neel Kashkari pushed back against optimism over recent inflation data Wednesday, saying price pressures remain "still too high" despite a softer-than-expected reading on the Fed's preferred inflation gauge, the Personal Consumption Expenditures index.
Kashkari made the remarks during an exclusive interview with CNBC's Steve Liesman, offering one of the clearest signals yet from a regional Fed leader that policymakers are not prepared to declare victory on inflation even as some economic indicators begin to ease.
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On the employment side, Kashkari offered a more upbeat assessment, describing the labor market as "pretty good" — a characterization that suggests the Fed sees little urgency to cut rates to protect jobs, even as it continues monitoring whether inflation is cooling fast enough to justify policy easing.
The comments underscore the difficult balancing act facing Fed officials, who must weigh persistent inflation against the risk of holding rates too high for too long and unnecessarily slowing economic growth. Kashkari's tone suggests the central bank remains in a watchful, data-dependent posture rather than on the verge of a pivot.
Continue reading at Finance for the full interview and additional context from Kashkari's conversation with CNBC.
