Fed's Kashkari: Open to rate hikes of 25 or 50 basis points

Minneapolis Fed President Neel Kashkari said the Fed is open to raising interest rates by 25 or 50 basis points at its next meeting. Minneapolis Fed President Neel Kashkari said the FOMC is open to raising interest rates by 25 or 50 basis points at its next meeting. However, he emphasized that interest rates may need to go higher than the 5.4% level that he thought would be adequate in December. “I think my colleagues agree with me that the risk of undertightening is greater than the risk of overtightening. Given that inflation data did not decline as much as expected, there may be a need to revise upward my own expectations for the path of future Fed rate hikes,” Kashkari said at an event with business representatives. Fed members are due to outline their estimates for the appropriate rate path at the FOMC meeting later this month. Kashkari emphasized that he is inclined to point to a path that puts interest rates higher than his previous estimate of 5.4%.