The president of the Federal Reserve Bank of Minneapolis has said that the Central Bank is “far, far away from declaring victory” on inflation, despite the Biden administration praising “zero percent” inflation in July, which prompted some confusion.
Neel Kashkari told Reuters on Aug. 10 that he believes the U.S. central bank will need to raise its policy rate another 1.5 percentage points in 2022 and more in 2023, even if doing so prompts an economic downturn in the “near future,” noting that “We have to get back to 2 percent inflation.”
