Kashkari Warns U.S. Inflation Spreads Beyond Oil

Minneapolis Fed President Neel Kashkari said on Fox News' Sunday Morning Futures that U.S. inflation is too high across the economy, not limited to oil or energy, including services. He backed the Fed's unanimous September 15-16, 2026 decision to raise the benchmark rate by 0.25 percentage point to 3.75%-4.00%, the first increase since 2023, aiming to return inflation to the 2% target after more than five years above it. Kashkari was one of three July dissenters who wanted a hike when rates were held. He said rate policy cannot reopen the Strait of Hormuz or cut oil prices after U.S. and Iran attacks sank tankers and Saudi Arabia closed a pipeline, but the Fed can stop energy pressures from entrenching. He called the economy and labor market resilient. Kevin Warsh estimated inflation on the Fed's preferred gauge near 3.6% in August. All but two officials project at least one more quarter-point rise this year; rate futures show roughly two-in-three odds of ending 2026 at 4.00%-4.25%. Kashkari said he hopes conflicts ease so growth gains momentum and inflation falls, making the Fed's job easier. The official August inflation figure is due later this month.