Neel Kashkari, President and CEO, Federal Reserve Bank of Minneapolis, speaks at the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 7, 2024.
David Swanson | Reuters
Minneapolis Federal Reserve President Neel Kashkari said Thursday that his priority is to bring down inflation in the U.S. over the labor market, calling the rise in consumer prices “too high.”
Speaking to CNBC’s Kaori Enjoji at the Bank of Japan-IMES Conference, Kashkari said that the U.S. central bank would take a “balanced approach” to its dual mandate of price stability and full employment.
However, he pointed out that inflation has run above the Federal Reserve’s 2% target for more than five years, while the labor market is in “decent shape” right now.
“I am focusing heavily on inflation. I’m not ignoring at all the labor market. We need to pay attention to both sides, but the labor market is in decent shape right now, while inflation is simply much too high,” he said.
He added that the longer inflation remains elevated, the higher the risk of inflation expectations unanchoring and drifting higher.
“If that were to happen, then we’d have to respond even more aggressively, so we’re much better off doing what we need to do to keep inflation expectations anchored.”
The U.S. headline inflation rate most recently came in at 3.8% in April. Excluding food and energy, the core CPI increased 0.4% and 2.8%, respectively.
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