Speaking on CNBC, Kashkari also said services inflation remains “pretty darn entrenched” and that “it may be that we have to go north of 6%” to get it back to the Fed’s 2% target. The Fed raised interest rates for a 10th straight meeting earlier this month, lifting its benchmark overnight rate to a range of 5% to 5.25%. Officials in their accompanying policy statement opened the door to pausing further hikes while they assess how inflation is responding and to see to what extent the recent banking system stress might add to the tightening of conditions engineered by the Fed.
