Neel Kashkari warns Fed may need multiple rate hikes if Iran oil shock shifts inflation

Oil shock uncertainty could flip the Fed stance

Minneapolis Fed president Neel Kashkari said the Fed should openly acknowledge the risk of additional rate hikes if the U.S.-backed conflict involving Iran changes the inflation outlook through an oil shock. In his dissent at this week’s meeting, Kashkari argued that maintaining the Federal Reserve’s 2% inflation target may require “potentially a series” of hikes depending on how prices respond.