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Kashkari says more Fed hikes likely into 2027, October timing open

Kashkari’s projections call for one more 25 basis point increase in 2026 and another in 2027, even as he said the October 27 to 28 decision window remains flexible.

Reported · Written up by our desk · Central Banks

Minneapolis Fed President Neel Kashkari told Reuters on October 1 that additional rate increases will likely be needed into 2027, while he left the timing of the next move open.

Kashkari said he was open minded about the October 27 to 28 meeting and did not have a strong view on whether the Fed should hike then, and he referenced September projections that include one more 25 basis point increase in 2026 and another in 2027.

He also indicated that if economic resilience persists and inflation stays too elevated, policy could end up going higher than his current path, noting that the data he has received since September suggest the economy is doing better than anticipated.

Kashkari added that with the labor market healthy and the economy performing well, policy is probably not particularly restrictive right now, and he linked a recent rise in long term yields in part to perceptions around the outlook.

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