Bloomberg Surveillance · Thursday, October 1, 2026
Minneapolis Fed President Neil Kashkari believes that while supply shocks can initially be a factor, persistent inflation over several years necessitates a monetary policy response. He draws parallels to the 1970s, arguing that at some point, the Fed must act to bring down inflation regardless of its cause.
“No, I hear you, but this goes back to the fundamental question of if it's a one-time supply shock, should monetary policy respond to it? And my view on that has evolved. If it's truly a one-time supply shock, fine. If it's five years of a sequence of one-time supply shocks, at the end of the day, it's the Fed's job. to get inflation back down.”
“But, you know, five years into this, at some point, you have to say, hey, it's the Fed's job to get inflation back down, regardless of what the causes are.”