Minneapolis Federal Reserve President Neel Kashkari said higher interest rates are needed now to bring inflation down. He argued that moving gradually could help prevent the need for more severe increases later.
Kashkari’s comments come after last week’s Federal Open Market Committee meeting, where he was one of three officials who dissented. His position signals support for beginning a measured increase in borrowing costs as policymakers continue addressing inflation.
The remarks add to the debate over how quickly the Federal Reserve should adjust rates. Kashkari emphasized a slow approach, balancing the need to restrain price pressures against the risk of making larger moves in the future.
