Key takeout
- Neil Kashkari has expressed confidence in the Federal Reserve’s ability to achieve its 2% inflation target.
- The 2% benchmark has been challenged by rising post-pandemic inflation rates, but by mid-2025 the trend has improved.
Neil Kashkari, chairman of the Federal Reserve Bank of Minneapolis, expressed his trust in today’s ability to reach central banks’ inflation targets amid ongoing economic uncertainty.
Since its official adoption in 2012, the Fed has maintained its annual inflation target of 2%, and has used interest rate adjustments and other monetary policy tools to guide economic stability without causing excessive market fluctuations.
US inflation has declined from its post-pandemic peak, but continues to surpass the 2% benchmark on some key measures. Recent data shows the cooling labor market that could affect future federal open market committee rate decisions.
Kashkari has advocated higher interest rates and higher interest rates to combat price increases, particularly during the economic uncertainty of the early 2020s, when inflation exceeded target levels.
