With inflation higher and lasting longer than expected, the Federal Reserve needs to start tightening policy to bring supply back into better balance with demand, Minneapolis Fed President Neel Kashkari said on Friday.
"The way we bring that into balance is, we will tend to tighten monetary policy by raising interest rates," Kashkari told NPR News in his first public comments since the Fed met earlier this week and signaled it will begin to raise rates in March.
"That would then not tap the brakes on the economy, but it would let our foot off the accelerator a little bit," he said, adding that "we just don't know" how many rate hikes that will take.
© 2023 Thomson/Reuters. All rights reserved.