According to DeepTech Flow news, on May 3, Minneapolis Federal Reserve President Neel Kashkari stated that with wars impacting supply chains and driving up inflationary pressures, the Fed ‘may need to raise interest rates’ under certain circumstances.
Kashkari noted that the longer the conflict lasts, the greater the inflationary pressures, and even if the conflict ends immediately, supply chain recovery could still take months. He emphasized that the core challenge currently facing the Fed is ‘high uncertainty in the inflation path,’ so policymakers need to remain open-minded about the future interest rate path.
Additionally, he stated that he does not believe the level of U.S. government debt has constituted an ‘immediate crisis,’ while expressing anticipation for collaboration with Fed board nominee Kevin Warsh in the future and willingness to seriously consider some of his concerns.
