Minneapolis Fed President Neel Kashkari said yesterday that while headline inflation may have peaked, there is no evidence that core inflation has stopped climbing. So, “I can’t see how I would recommend pausing interest rate increases,” he added.
“My best guess right now is yes, do I think inflation is going to level out over the next few months, the services, the core inflation, and then that would position us some time next year to potentially pause,” he added.
“I’ve seen very little evidence in my region that the labor market is softening,” Kashkari said. “The No. 1 issue I hear from businesses small and large is that they’re struggling to find workers, how they’re having to pay more wages to keep their employees and to attract employees.”
