Kashkari: If war continues to push up inflation, the Federal Reserve "may need to raise interest rates"

On May 3, Minneapolis Fed Chairman Kashkari said that as war hits the supply chain and pushes up inflationary pressures, the Fed "may need to raise interest rates" under certain circumstances. Kashkari said that the longer the war lasts, the greater inflationary pressures will be, and even if the conflict ends immediately, it may still take months for supply chains to recover. He emphasized that the core challenge currently facing the Fed is "the high degree of uncertainty in the inflation path," so policymakers need to remain open to the future interest rate path. In addition, he said he did not believe that the level of U.S. government debt constituted an "immediate crisis" and said he looked forward to working with Federal Reserve governor nominee Kevin Walsh in the future and was willing to take some of his concerns seriously.