Kashkari says inflation remains elevated despite softer PCE data

Minneapolis Federal Reserve President Neel Kashkari said Wednesday that inflation is still too high, even after new data showed price pressures came in below economists' expectations. Kashkari said the core personal consumption expenditures index, the Fed's preferred inflation measure, still points to inflation running near 3% and noted that it has stayed elevated for more than five years. He said the latest figures did not materially change his view. He also described the U.S. economy as resilient and said the labor market is in pretty good shape, though not great. His comments came after the Fed raised rates this month and signaled that another increase could follow. Kashkari also discussed the potential effects of the artificial intelligence investment boom, saying it could support productivity if it delivers as expected, but warning that largescale investment may not always produce the benefits companies anticipate.