Fed's Kashkari Says Inflation Too High Across All US Sectors, Not Just Energy

Minneapolis Federal Reserve President Neel Kashkari said on Sept. 20, 2026, that inflation remains too high across all sectors of the US economy, not just in rising oil prices, and warned the Fed has no rate tool that can reopen the Strait of Hormuz or lower crude prices. "So even if we strip out energy, which is really volatile, and strip out food ... inflation is still too high," Kashkari told Fox News' "Sunday Morning Futures." Kashkari backed the unanimous vote last week to raise rates by a quarter point to 3.75%-4.00%. Projections show all but two policymakers see at least one more quarter-point increase this year; rate futures price a two-in-three chance the policy rate ends 2026 in the 4.00%-4.25% range. His comments echoed Fed Chairman Kevin Warsh, who estimated August inflation near 3.6%, with too many categories above 3% on six- and 12-month bases.