Kashkari now expects one Fed rate hike this year

Minneapolis Federal Reserve President Neel Kashkari said he now expects the central bank to raise interest rates once before the end of the year, reversing his earlier view that rates would be cut. He said the change reflects persistent inflation and uncertainty tied to conflict in the Middle East, which he argued could keep energy and supplyrelated price pressures elevated. Kashkari made the remarks during a panel at the Aspen Ideas Festival shortly after the Fed left its benchmark rate unchanged. Recent government data showed inflation running above the Fed’s 2% target, with both headline and core measures rising to their highest levels in more than a year. Kashkari said his outlook remains dependent on incoming economic data, while other Fed officials have signaled differing views on the path for rates.