Full Breakdown
Inflation Across the Economy Remains Too High, Fed’s Kashkari Says
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Inflation Broadening Beyond Energy
On September 20, Minneapolis Federal Reserve President Neel Kashkari told Fox News that price pressures are “still too high” even after removing the volatile food and energy components from the consumer-price basket.
Recent Fed Policy Decision
The remarks came less than a week after the Federal Open Market Committee voted unanimously to raise the target range for the federal-funds rate by a quarter percentage point to 3.75 %–4.00 %. Kashkari had been one of three officials who supported a hike at the prior meeting when the majority voted to hold rates steady. Projections released with the decision indicated that most policymakers anticipate at least one more quarter-point increase before year-end.
Official Statements & Responses
Fed Chair Kevin Warsh echoed the concern, stating that “too many categories are still posting increases above 3 percent, on both a six- and 12-month basis.” Warsh also estimated that the Fed’s preferred inflation gauge was “likely running around 3 percent” (or, in another report, around 3.6 % for August).
Conflicting Reports & Gaps
Two Reuters excerpts differ on Warsh’s inflation estimate: one places the gauge at around 3.6 % for August, while another cites an estimate of around 3 %. The sources do not clarify which figure is final, leaving a gap in the precise current inflation reading.
Verbatim Quotes
- “So even if we strip out energy, which is really volatile, and strip out food — they matter a lot — but in terms of where the economy is going, inflation is still too high,” — Neel Kashkari, federal reserve president
- “The inflation that the American people are feeling every day is much beyond just oil prices. It's in all aspects of the economy. It's in the services sector, for example, widely. So we have tools to bring that back down,” — Neel Kashkari, federal reserve president
- “Too many categories are still posting increases above 3 percent, on both a six- and 12-month basis,” — Kevin Warsh, fed chairman
These statements capture the Fed officials’ view that inflation is widespread, not confined to energy spikes, and underscore the central bank’s reliance on monetary tools amid geopolitical turbulence.
