Minneapolis Fed's Kashkari Dissents

Minneapolis Fed's Kashkari: dissented at FOMC meeting because I Preferred to raise funds rate by 0.25 percentage point Kashkari: series of supply shocks have been responsible in part for inflation - More recently data center investments have added new demand element to inflation - Increasingly believe monetary policy has role to play in addressing successive supply shocks that might lead to entrenched inflation - Monetary policy can look through individual supply shocks - To manage against risk of inflation becoming entrenched, would prefer to tighten policy incrementally - If inflation durably fades, a strategy of small steps would allow FOMC to slow or pause subsequent adjustments without unnecessary impact on real economy - If inflation remains elevated, a potential series of small policy moves would be better than waiting and concluding that bolder actions were necessary