Lates News

Minneapolis Fed President Kashkari said that he expects the Fed will still need to raise rates further to restrain the economy and inflation, but he does not have a strong view on whether it should act at the October meeting. His previous projection was one more 25 basis point hike this year and another in 2027, but since the September meeting the U.S. economy has performed more strongly than he expected, while inflation remains too high; if the economy continues to be unusually strong and inflation proves more stubborn than expected, rates may need to rise to a higher level than currently anticipated. Kashkari believes that the current labor market is healthy and the economy is performing well, indicating that monetary policy "may not be particularly restrictive." He also said that recent market volatility has not yet shown systemic risk, and the Treasury market has been able to digest the repricing of interest rates normally.