Kashkari: U.S. inflation has spread to the services sector, and the Fed still needs to continue to push prices down.

BlockBeats news, September 21, Minneapolis Fed President Kashkari stated that U.S. inflationary pressures are no longer confined to rising energy prices but have spread to multiple sectors of the economy, especially services. Kashkari said that the inflation facing Americans is "far more than just oil prices," and the Fed needs to continue pushing inflation back down to its 2% target.

Kashkari believes that the U.S. economy and labor market remain resilient, giving the Fed room to address persistent price pressures. He was previously one of three Fed officials who supported a rate hike in July, concerned that if inflation persists too long, more aggressive policy tightening will be needed.

In September, the Fed raised interest rates by 25 basis points to 3.75%—4%, the first rate hike since 2023. Kashkari did not explicitly state the timing of the next rate hike, but emphasized that if inflationary pressures continue to expand, the Fed has a responsibility to take measures to restore price stability.