Fed Officials Weigh Outlook Amid Tighter Credit, Price Pressures

Two Federal Reserve officials signaled they favored pausing interest-rate increases, while a third policymaker suggested the central bank may have more work to do in its inflation fight.

“We at the Federal Reserve probably have more work to do on our end to try to bring inflation back down,” Minneapolis Fed President Neel Kashkari said Monday during a moderated discussion in St. Paul, Minnesota.

“The labor market is still hot, and we have not seen much softening in the labor market. So, that tells me that we have a long way to go before we get inflation back down,” he said.

Kashkari, who votes on policy this year, was the third Fed official to weigh in on policy following remarks from his Atlanta Fed counterpart Raphael Bostic and Chicago’s Austan Goolsbee.

The Federal Open Market Committee raised rates by a quarter percentage point at a meeting earlier this month, bringing its benchmark to a target range of 5% to 5.25% and signaling it may be ready to pause its tightening cycle at the next meeting in June.