Minneapolis Fed President Neel Kashkari said yesterday that in the June economic projections, he recommended interest rate at 3.9% by the end of this year, and 4.4% next. He added, “I haven’t seen anything that changes that.”
Even after yesterday’s July CPI release, the Fed is “far away from declaring victory” on inflation, Kashkari said. “This is just the first hint that maybe inflation is starting to move in the right direction, but it doesn’t change my path.”
“I think a much more likely scenario is we will raise rates to some point and then we will sit there until we get convinced that inflation is well on its way back down to 2% before I would think about easing back on interest rates,” he said.