Fed's Kashkari reportedly says inflation is still too high across the U.S. economy

Minneapolis Federal Reserve President Neel Kashkari told Fox News on Sunday that inflation remains elevated across the entire U.S. economy, not merely a function of volatile energy prices. "So even if we strip out energy, which is really volatile, and strip out food ... inflation is still too high," Kashkari said.

The remarks underscore continued hawkish sentiment within the Federal Reserve despite recent market optimism around disinflation. Core inflation—excluding food and energy—has remained a persistent concern for policymakers attempting to bring price growth back to the Fed's 2% target. Kashkari's comments suggest rate cuts remain off the table in the near term, even as traders have periodically priced in easing scenarios.

The Minneapolis Fed president's public stance adds weight to the view that the central bank will maintain restrictive policy longer than some market participants anticipate. His focus on broad-based inflation pressures, rather than headline volatility driven by oil, signals the Fed is monitoring underlying price momentum across services, housing, and wages.