Latest Remarks from Fed Official — Kashkari, a 2026 Voting Member Neel Kashkari, the Minneapolis Fed President and a 2026 FOMC voting member, stated that the latest round of inflation data hasn’t changed his view—inflation is still too high. The September economic projections included two rate hikes by 2026, one of which was already implemented in September. As of now, he still leans toward one more hike this year, but the decision will depend on upcoming data on growth, consumption, employment, and inflation. He also raised his estimate of the neutral interest rate to 3.25%. Currently, the federal funds rate range is 3.75% to 4%, meaning the policy rate is only about 0.5 to 0.75 percentage points above the neutral level by his calculation. The economy’s resilience after multiple shocks has led him to question whether the current policy is sufficiently restrictive on demand. In my personal opinion, Kashkari still supports one more rate hike. While he didn’t specify the timing, if September’s inflation data shows a significant increase, he might cast a vote for it. Kashkari emphasized that the September dot plot was merely a snapshot based on data at the time. If the economy and consumption continue to outperform expectations and inflation doesn’t come down, there will be stronger justification for another hike. However, if subsequent data shows a clear weakening, he will reassess. This means that if inflation decreases in October and November, a December rate hike might not be necessary. One @Gate, trade more markets.