Fed’s Kashkari: I am open to the possibility that we may need more than one hike

Minneapolis Federal Reserve  President Neel Kashkari said on Wednesday in an interview with CNBC that the central bank could have to raise interest further if the economy does not slow as intended. However, he warned that if downside scenarios for growth like the government shutdown or the auto strike, hit the economy they might have do to less with monetary policy to bring inflation back to the target. 

Kashkari explained that the US economy has been surprisingly resilient. Regarding his projections, he sees no rate changes in 2024. "Higher oil prices won't alone warrant more rate hikes," he added.  

Market reaction 

The US Dollar Index is up 0.60%, trading at 106.80, at its highest level since November. EUR/USD broke below 1.0500 for the first time since January and USD/JPY is approaching 150.00.