The Fed can’t pause its campaign of monetary policy tightening once its benchmark interest rate reaches 4.5% to 4.75% if “underlying” inflation is still accelerating, Minneapolis Fed President Neel Kashkari said. “Core services inflation — which is the stickiest of all —keeps climbing, and we keep getting surprised on the upside,” Kashkari said Tuesday during a panel discussion hosted by the Women Corporate Directors Minnesota Chapter. Investors currently see a peak around 4.9% early next year, according to prices of futures contracts. The Minneapolis Fed chief, who before the pandemic was known as the Fed’s most outspoken dove, has emerged this year as its biggest hawk.
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