The Federal Reserve may need to push its benchmark policy rate above 4.75 percent if underlying inflation does not stop rising, Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday.
“I’ve said publicly that I could easily see us getting into the mid-4%s early next year,” Kashkari said at a panel at the Women Corporate Directors, Minnesota Chapter, in Minneapolis.
“But if we don’t see progress in underlying inflation or core inflation, I don’t see why I would advocate stopping at 4.5 percent, or 4.75 percent or something like that. We need to see actual progress in core inflation and services inflation and we are not seeing it yet.”…