Fed's Kashkari: Middle East inflation risks could warrant series of rate hikes
Minneapolis Fed President Neel Kashkari said that the central bank could begin “a series of” rate increases as inflation rises, sparked by the Middle East conflict, in comments to Nikkei as he visits Tokyo for two days to attend the Bank of Japan's annual conference.
He said that “the next rate change could be either a cut or a hike,” adding that it would depend on inflation’s behaviour. Kashkari added that a persistent closure of the Strait of Hormuz can affect long-term inflation expectations in households and businesses, which “could become unanchored.”
Consequently, the central bank would likely tighten policy. “Federal funds rate increases, potentially a series of them, could be warranted,” Kashkari said
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The calm before the storm? GBP volatility approaches record lows: Budget announcement imminent, Wells Fargo warns of severe hedging shortfall
The pound options market is "unusually calm": implied volatility is nearing record lows. Wells Fargo warns that investors may be underestimating the impact of the budget announcement, and suggests selling pounds and buying euros.

Shibarium RPC updated in ethereum-lists registry, Cloudflare migration announced
Stocks Fall Pre-Bell as Traders Await Fed Rate Decision Amid Rising Treasury Yields, Oil Prices
India Launches DLT Network for Tokenized Bond Issuance and Settlement
