Federal Reserve Kashkari: I don't know how high interest rates will rise, but necessary measures will be taken to reduce inflation

The Zhitong Finance App learned that Federal Reserve Bank of Minneapolis Governor Neil Kashkari said that he is currently unable to determine what level interest rates need to be raised to curb prices, adding that after five years of supply shocks, it is the responsibility of the Federal Reserve to contain inflation.

“We will take necessary actions to bring inflation back to target levels,” Kashkari said in an interview on Thursday. “Now, the question boils down to “how high interest rates need to be raised.” “I have no answer to that,” he said.

Policymakers voted unanimously last month to raise the benchmark interest rate. This is the first rate hike in nearly three years. The bitmap forecast released after the meeting shows that most officials believe that the Federal Reserve will raise interest rates at least once more during the year.

New York Federal Reserve Chairman John Williams stated on Tuesday that after the rate hike last month, there is no need to continue raising interest rates immediately. Affected by this, investors lowered their expectations for the Federal Reserve's interest rate hike at the October interest rate meeting.

Inflation data released on Wednesday also showed that a key measure of potential prices rose less than expected last month. However, according to federal funds futures, the market still expects another rate hike before the end of the year.

Kashkari was one of three Federal Reserve officials who opposed the July decision to keep interest rates unchanged. At the time, he preferred to raise interest rates by 25 basis points at that meeting.

The Minneapolis Federal Reserve Governor said earlier this week that inflation is still too high and he hopes the Federal Reserve can curb price increases through moderate adjustments.