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US Fed official says rate hikes may be needed if inflation surges

World News

01-05-2026 | 08:41

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US Fed official says rate hikes may be needed if inflation surges

A key U.S. Federal Reserve official warned Friday that a series of interest rate hikes could be needed if price shocks from the Middle East war are larger than expected, fuelling inflation.

"Federal funds rate increases, potentially a series of them, could be warranted, even at the risk of further weakness to the labor market," Minneapolis Fed President Neel Kashkari said in a statement explaining his dissent to the central bank's decision this week to keep interest rates steady.

Kashkari was among four officials who voted against the Fed statement on Wednesday after a two-day policy meeting.

AFP

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