Fed's Kashkari Says Rates Likely on Hold for 'Extended Period'

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, indicated that the Federal Reserve is likely to maintain current interest rates for a considerable time to ensure inflation aligns with their target. Despite recent inflation data suggesting that monetary policy might not be sufficiently restrictive, Kashkari believes the most probable scenario is to maintain the status quo unless inflation significantly changes. He highlighted the resilience of the housing market and its impact on inflation, suggesting that the neutral interest rate might need adjustment if inflation remains elevated.