Transcript: Minneapolis Fed president and CEO Neel Kashkari on "Face the Nation with Margaret Brennan," May 3, 2026
Summary
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said the Fed kept interest rates steady but may not cut them soon because of uncertainty from the conflict in the Middle East. He warned that disruptions, especially around the Strait of Hormuz, could raise energy and fertilizer prices, which would increase inflation in the U.S.Key Facts
- The Federal Reserve recently kept interest rates unchanged.
- Kashkari was one of three Fed regional presidents who signaled rate cuts may not happen soon.
- The conflict in the Middle East, particularly involving Iran and the Strait of Hormuz, is causing uncertainty.
- Higher energy and fertilizer prices from the conflict are affecting U.S. inflation.
- Inflation effects from this conflict may be as large as from the Russia-Ukraine war.
- Supply chains of some global companies could take about six months to normalize even if the Strait reopens immediately.
- The U.S. labor market has been stable but shows some signs of slowing.
- Kashkari emphasized the Fed must closely watch inflation and energy price changes before deciding on rate moves.
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