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  • Writer's pictureRealFacts Editorial Team

Minneapolis Federal Reserve President Says Interest Rates Will Remain High

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, spoke this week on the current state of inflation and interest rates and stated that due to economic growth and sticky inflation, he believes the Fed will have to keep interest rates higher for a while. 

In the last FOMC meeting, the Fed decided to keep interest rates steady in a range of 5.25% - 5.50%, with most Fed officials thinking that rates will have to remain higher until they can see that inflation really is cooling down towards the Fed’s goal of 2%. Currently, inflation isn’t going down in the way that the Fed is hoping for, Kashkari said “Inflation seems to have gone sideways, while economic growth has remained resilient. It has led me to question if monetary policy is having as much downward pressure on demand as I would have otherwise expected.” Kashkari doesn’t see deflationary indicators currently, this affects his prediction for rate cuts in the foreseeable future as he puts its, “I think the most likely scenario is where we are right now, which is just we stay put for an extended period of time until we get clarity on [whether] disinflation is, in fact, continuing or if it has stalled out.” 

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