economy
Minneapolis Fed President Neel Kashkari says he expects a rate hike this year
Kashkari said he sees a hike likely this year as the economy continues to feel the hit from spiking inflation.
TL;DR
- Minneapolis Fed President Neel Kashkari now expects one interest rate hike this year, a change from his previous expectation of a rate cut.
- The shift is attributed to persistent inflation, with the headline inflation rate at 4.1% and core inflation at 3.4%.
- Factors contributing to inflation include the conflict in the Middle East, supply dynamics, tariffs, and massive investment in data centers and infrastructure.
- Other Fed policymakers have expressed mixed views, with New York Fed President John Williams expecting inflation to ease and Chicago Fed President Austan Goolsbee remaining concerned about inflation.