Fed's Kashkari Says Inflation Still 'Too High' Despite Softer PCE Data
The Minneapolis Fed president told CNBC the labor market remains 'pretty good' even as price pressures persist.
Written by EGazette’s AI. The facts are drawn from cited sources; the analysis is the AI’s own.
Minneapolis Federal Reserve President Neel Kashkari said inflation remains "still too high" even after a softer-than-expected reading on the Fed's preferred inflation gauge, the personal consumption expenditures (PCE) price index.
Speaking in an exclusive conversation with CNBC's Steve Liesman on Wednesday night, Kashkari characterized the labor market as "pretty good," suggesting the economy remains on relatively solid footing even as the central bank continues to weigh its next moves on interest rates.
Kashkari's comments reflect the balancing act facing Federal Reserve officials, who are trying to bring inflation down toward their target while avoiding unnecessary damage to employment. The softer PCE data had raised hopes among some investors that the Fed could ease policy further, but Kashkari's remarks suggest some officials remain cautious.
Markets continue to parse comments from individual Fed officials for clues about the timing and pace of future interest rate decisions, with the central bank's next moves closely watched by investors across asset classes.
Sources
- Fed's Kashkari says inflation is 'still too high' even after softer-than-expected PCE data, labor market is 'pretty good' — CNBC — Top News
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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