Fed May Raise Rates as War Pushes Supply Chain Disruptions and Inflation, Kashkari Says

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Minneapolis Federal Reserve President Neel Kashkari stated recently that the Federal Reserve may need to raise interest rates in certain scenarios as war disrupts supply chains and raises inflation pressures. Kashkari noted that the longer the conflict persists, the greater the inflation pressure, and supply chain recovery could take months even if the conflict ends immediately. He emphasized that the Fed’s core challenge is the high uncertainty surrounding the inflation path, requiring policymakers to maintain flexibility on future rate decisions.

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