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Kashkari says it remains unclear whether the Iran war will influence inflation or shape monetary policy decisions
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said it is too soon to know how the Iran war will affect inflation. He said the shock could affect monetary policy, and the Fed needs to see how large and how long it lasts. He said elevated headline inflation needs monitoring given the recent path. He said inflation is still too high but trending down, and the Fed must reach its 2% inflation target. Kashkari said he had thought monetary policy was in a good place, but more data are needed to decide what to do with rates this year. He said the strength of the economy points to a higher neutral rate, ... (full story)