Fed’s Kashkari: Nearly Half of Officials in Last Week’s Dot Plot Expect at Least One More Rate Hike This Year

Odaily Planet Daily News: Fed official Kashkari said, “I am concerned about inflation, and this is not just related to the situation in the Middle East, but rather a sign of broader inflationary pressures in the economy.” The Iran war has pushed up oil prices, with prices also rising across numerous categories. This has intensified concerns among some Fed officials that inflation is more widespread and persistent, potentially requiring stronger action from the central bank. A report released earlier this week showed that the May PCE annual rate recorded 4.1%, the largest increase since April 2023. Prices have exceeded the Fed's 2% target for more than five years. In the dot plot projections released by the Fed last week, half of the officials who submitted dot plot forecasts predicted at least one rate hike this year. (Data from Jinshi)