Fed’s Kashkari: Inflation ‘still too high’ even after softer-than-expected PCE data

Minneapolis Fed President Neel Kashkari telling me last night at the Council on Foreign Relations, he's penciled in two more rate increases, one more this year and another next year, but he left open the possibility there could be more because of strong growth, persistent inflation, and a strong signal from the market that the Fed has further to go than most officials currently project. The 10-year yield Andrew was just saying oh, rising overnight to the highest level since '02, hitting 533. Now, uh coming back just a little bit to 529 at this point. He also said the 2-year is a better reflection of the market's view of the Fed outlook, substantially more aggressive than the Fed's own projections. >> I don't want to blindly dismiss what markets are signaling cuz markets right now are signaling that policy may have to go even tighter than we expect. I want to pay attention to it, but I don't want to blindly follow it either because there are a lot of different factors can go into some of these market judgments. >> So, he said that with strong growth and persistent inflation, the Fed could not look through the current oil price shock. >> I'm sensitive to the fact that for 5 years now, 5-plus years, we've had these rolling supply shocks, and eventually this gets embedded in people's decision-making, and it becomes a self-fulfilling prophecy. It's our job to make sure that that doesn't happen.