Kashkari Sees 1 Fed Rate Hike in 2026 as Inflation Hits 4.1%
Updated
Updated · CNBC · Jun 26
Kashkari Sees 1 Fed Rate Hike in 2026 as Inflation Hits 4.1%
3 articles · Updated · CNBC · Jun 26
Summary
Neel Kashkari said he now expects one interest-rate increase by year-end, reversing his March view that the Fed would cut rates once.
A 4.1% rise in the Fed’s preferred inflation gauge — with core inflation at 3.4% — pushed the Minneapolis Fed chief to turn more hawkish.
Kashkari said Middle East tensions, oil and fertilizer disruptions tied to the Strait of Hormuz, tariffs and heavy data-center spending are all keeping price pressures elevated.
Fed officials are still split after last week’s decision to hold rates steady: John Williams said policy is well positioned, while Austan Goolsbee voiced inflation concern but gave no rate path.
Inflation has stayed above the Fed’s 2% target for five years, leaving policymakers wary that another energy-driven surge may not fade quickly.