Minneapolis Federal Reserve President Neel Kashkari supports the Fed beginning to raise interest rates gradually to control inflation, saying he has yet to see evidence that current monetary policy is tight enough. He was one of three voting members who backed a quarter-point rate increase at last week's policy meeting, while nine other members voted to hold the policy rate at 3.5 to 3.75 percent. Kashkari said strong corporate earnings, a still-robust labor market, and resilient consumers make this an appropriate time to start raising rates little by little, rather than waiting until inflation becomes entrenched and then having to hike aggressively later.
Kashkari backs gradual rate hikes, signaling higher policy rate.
Hawkish Fed stance pushes long-term yields up.
