Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said Friday that he expects the central bank will need to implement one interest-rate hike this year.
In remarks during a panel at the Aspen Ideas Festival, Kashkari confirmed that he was one of nine policymakers who anticipate the Fed will need to raise interest rates by the end of the year in the latest Summary of Economic Projections that the central bank issued last week at the conclusion of its June policy meeting.
Kashkari, a current voting member of the Federal Open Market Committee, said he penciled in one rate hike. That marked a shift from his previous forecast. Previously, Kashkari said he had forecast one rate cut by the end of the year at the Fed's March policy meeting.
"I don't trust Iran to honor whatever agreement has been made. There's some evidence overnight that they're already reneging on it. So I certainly am not seeing the 'all-clear' coming out of the Middle East, and that makes me cautious about feeling too good that the worst is behind us," Kashkari said.
Kashkari cautioned that his forecast depends on the data and could shift. "It's a pencil, and so you know, we're going to have to see how the data comes in," he added.
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June 26, 2026 12:11 ET (16:11 GMT)
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