Fed's Kashkari Signals Prolonged High Interest Rates Amid Uncertain Inflation Trends

Despite recent inflation data, the Federal Reserve may maintain elevated interest rates longer than anticipated, with potential hikes if inflation persists.

Minneapolis Fed President Neel Kashkari emphasizes the need for multiple positive inflation reports before considering rate cuts.
Recent economic data suggests that current interest rates may not sufficiently curb inflation, raising the possibility of further hikes.
Kashkari points to the housing market's resilience as an indicator that the effective neutral interest rate may be higher than previously estimated.
Investors adjust expectations, foreseeing no rate cuts until at least after the November election, reflecting ongoing economic uncertainty.
Federal Reserve's decision-making remains apolitical, focusing solely on economic indicators and trends.