Minneapolis Fed President emphasizes inflation control despite a resilient labor market, citing prolonged price pressures above the 2% target.
Minneapolis Federal Reserve President Neel Kashkari stated that curbing inflation remains his top priority, even as the U.S. labor market shows resilience. He described inflation as “too high” and warned of risks if elevated prices persist, potentially unanchoring inflation expectations and requiring more aggressive policy responses.
Inflation has exceeded the Fed’s 2% target for over five years, with April’s headline rate at 3.8% and core CPI rising 0.4% month-over-month. Kashkari acknowledged the labor market’s strength but stressed the need to address inflation first to avoid deeper economic disruptions.
Kashkari’s remarks reflect a cautious stance, balancing the Fed’s dual mandate while signaling a continued focus on price stability. The comments come as markets assess the likelihood of future rate adjustments.