Minneapolis Fed President Kashkari Says Inflation Remains Too High Despite Cooler Data
Quick Look
Minneapolis Federal Reserve President Neel Kashkari stated that inflation remains a concern despite cooler-than-expected August PCE data, emphasizing that price growth has been elevated for over five years and noting resilient consumer spending and GDP figures.
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Why It Matters
The Minneapolis Federal Reserve President Neel Kashkari commented on inflation trends following the release of the August personal consumption expenditures price index, which showed cooler-than-expected core inflation at 3% annually.
Minneapolis Federal Reserve President Neel Kashkari said Wednesday that price growth remained a concern despite the latest data coming in cooler than economists predicted.
"Inflation is still too high," Kashkari told CNBC's Steve Liesman in an exclusive one-one-one interview as part of a Council on Foreign Relations event in New York.
Kashkari's comments follow Wednesday morning's release of the August personal consumption expenditures price index, known as the Fed's preferred gauge of inflation. The core version of index, which strips out volatile food and energy prices, came in lower than economists forecasted at 3% on an annual basis.
"There are many different measures of inflation, but it's running at around a 3% rate," Kashkari said. "It's been elevated now for more than five years. I didn't think the inflation data today really changed that story for me very much."
Kashkari said other economic data released Wednesday on consumer spending and gross domestic product showed the economy is "resilient."
What to Watch
AI outlook โ possibilities, not facts
The Federal Reserve may maintain current interest rates at its next meeting if inflation data continues to show moderation.
Possible ยท Within weeks
Open Questions
- How long will inflation remain above the Fed's 2% target?
- What specific economic indicators will influence the Fed's next policy decision?
