Kashkari Says Inflation Too High Across All Sectors, Backs Further Fed Rate Hikes

Minneapolis Fed President Neel Kashkari said on September 20, 2026, that U.S. inflation remains too high across all sectors, not just energy, and that the central bank has tools to address broad price pressures. He spoke on Fox News' "Sunday Morning Futures." Kashkari said services-sector inflation is widespread and underlying inflation is still uncomfortably elevated even excluding volatile food and energy. He noted monetary policy cannot unblock shipping lanes or lower crude prices but remains effective against broader inflation. His comments followed the Fed's September 2026 decision to raise the federal funds rate by a quarter point to 3.75%–4.00%, the first increase since July 2023. Updated projections put headline PCE inflation at 3.7% and core PCE at 3.4% for the year, with the return to the 2% target pushed back to 2029. Sixteen of 18 FOMC participants projected at least one more hike.