Minneapolis Fed chief Neel Kashkari says policy makers ‘need not overreach’ to the short-term jump in inflation

Minneapolis Fed chief Neel Kashkari says policy makers ‘need not overreach’ to the short-term jump in inflation

Consumers will be dealing with high inflation during a portion of 2022, but the Federal Reserve but shouldn't respond too quickly to conditions that will soon fade, Minneapolis Federal Reserve President Neel Kashkari said Sunday. "The math suggests we're probably going to see somewhat higher readings over the next few months before they likely start to taper off," he . A surge in demand from consumers who've received government stimulus money alongside widespread supply-chain disruptions are driving prices up, he said. "But my view is we also need to not overreact to some of these temporary factors, even though the pain is real. You know, the Federal Reserve, when we adjust monetary policy, it acts with a lag. And so if we overreact to a short-term price increase, that can set the economy back over the long term," he said. Government data released last week showed US consumer price inflation in October . The climb was paced by rising energy prices, with fuel oil prices jumping 12.3% through the month. CBS noted to Kashkari he has said he doesn't expect inflation to return to a 2% rate until 2024. The Fed has "taken the appropriate steps" in beginning later this