Fed's Kashkari Warns Inflation Pressures Have Broadened Across Entire US Economy

Minneapolis Federal Reserve President Neel Kashkari said Sunday that US inflation remains too high and has spread well beyond the oil-price shock tied to the US-Iran conflict, affecting multiple sectors of the economy. "What Americans feel every day is far more than just oil prices," he said, adding that price pressures exist across all parts of the economy. Kashkari said the Fed is increasingly concerned that inflation is not confined to areas hit by Middle East conflict or tariffs, with inflationary signs also emerging in the services sector. He said the Fed's job is to return inflation to its target and that it has the tools to do so. Kashkari was one of three dissenters in the July decision to hold rates steady, when he favored a hike and warned that waiting too long could entrench inflation and ultimately require more aggressive action. He said the US economy has shown resilience despite geopolitical and trade strains, with the labor market remaining strong. He hopes that as some conflict effects fade, growth can take over and disinflation can accelerate, easing pressure on Fed policy.