Minneapolis Federal Reserve President Neel Kashkari has reversed his previous dovish outlook, stating he now expects the central bank to implement at least one interest rate increase this year.
The shift marks a notable hardening of tone from the voting member, who had previously signaled patience with current policy levels.
Kashkari's change in stance underscores the intensifying debate within the Federal Open Market Committee regarding the persistence of inflationary pressures.
While earlier commentary from the Minneapolis Fed president suggested a wait-and-see approach, his latest projection aligns with a growing faction of officials concerned that price stability risks are re-emerging.
The comment comes as markets have been pricing in a more hawkish policy path, with rate-hike odds surging in recent sessions.
Kashkari's explicit projection of a hike adds credibility to the view that the Fed may need to act preemptively to anchor inflation expectations, particularly if economic data continues to show resilience.