[Federal Reserve's Kashkari: Expects One More Rate Hike This Year, Another in 2027] Federal Reserve's Kashkari expects the Fed to raise interest rates once more this year and again in 2027. Kashkari stated that the Fed's balance sheet is most effective when used under near-zero interest rates. The size of the Fed's balance sheet is a complex issue, and it is entirely reasonable to reassess balance sheet strategies. He also expressed optimism about artificial intelligence while considering the associated risks.