Kashkari: If War Continues to Boost Inflation, Fed 'May Need to Hike Rates'

BlockBeats News, May 3rd, Minneapolis Fed President Neel Kashkari of the United States stated that as the war impacts the supply chain and boosts inflationary pressures, the Fed may need to "raise rates" in certain situations.

Kashkari mentioned that the longer the war lasts, the greater the inflationary pressure. Even if the conflict ends immediately, supply chain recovery may still take several months. He emphasized that the Fed's current key challenge is the "highly uncertain inflation path," and therefore policymakers need to keep an open mind about the future interest rate path.

Furthermore, he stated that he does not believe the U.S. government's debt level has posed an "imminent crisis" and expressed readiness to collaborate with the Fed nominee Kevin Warsh in the future, showing a willingness to seriously consider some of the concerns raised.