Fed's Kashkari Says He Is Concerned About Broader Inflation Pressures

Minneapolis Fed President Neel Kashkari said he is concerned about inflation and that his worries are not limited to developments in the Middle East, but reflect signs of broader inflation pressures in the economy. According to Odaily, the war involving Iran has pushed up oil prices, and prices across many categories have also risen. The report said these developments have increased concerns among some Federal Reserve officials that inflation is broader and more persistent, and may require stronger action by the central bank. A report released earlier this week showed the annual PCE inflation rate in May was 4.1%, the largest increase since April 2023. The report added that prices have been above the Fed’s 2% target for more than five years. In the Fed’s dot-plot projections released last week, half of the officials who submitted forecasts expected at least one interest rate increase this year.