Fed's Kashkari says 'now is the time to start slowly moving' rates up

Minneapolis Federal Reserve President Neel Kashkari broke ranks at last week's Federal Open Market Committee meeting, joining two other dissenters in pushing for rate hikes now rather than later. Speaking to CNBC on Wednesday, Kashkari argued that raising rates immediately is necessary to tame inflation and avoid sharper increases down the road.

The dissent marks a hawkish stance against the broader FOMC decision. Kashkari, one of three officials who voted against the consensus, views the current policy as insufficient to control price pressures. His comments signal that the debate over the pace and timing of monetary tightening remains active inside the Fed, even after last week's meeting concluded.

The Minneapolis Fed chief's position contrasts with officials favoring a more gradual approach. His rationale centers on preemptive action: moving slowly now prevents the need for more aggressive tightening later if inflation persists or accelerates.