Neel Kashkari expects more Fed rate hikes through 2027

Minneapolis Federal Reserve President Neel Kashkari indicated that additional interest rate increases will likely be necessary to restrain the economy through 2027. While Kashkari expects further tightening, he remained undecided regarding the timing of the next move, stating he is “open-minded” about whether a hike will occur during the October 27–28 meeting.

Kashkari noted that recent data suggests the economy is performing better than previously anticipated while inflation remains “too elevated.” He warned that if economic resilience persists and inflation proves stickier than expected, policy may need to rise even higher than his current projections. He characterized the current policy as “probably not particularly restrictive” given the healthy labor market and strong economic performance.