Kashkari dissented at the last FOMC meeting, voting for a quarter-point rate hike while the majority voted to hold rates steady.

… tchlist Investing Club PRO Livestream Menu Markets Fed's Kashkari says 'now is the time to start slowly moving' rates up Published Wed, Aug 5 2026 8:11 AM EDT Updated Wed, Aug 5 2026 9:06 AM EDT Jeff Cox @jeff.cox.7528 @JeffCoxCNBCcom WATCH LIVE Key Points Minneapolis Fed President Neel Kashkari told CNBC on Wednesday that he thinks the central bank should "start slowly moving up" interest rates. Kashkari was one of three dissenters at last week's policy meeting who voted against the decision to hold benchmark rates steady. The policymaker noted that Fed Chairman Kevin Warsh told him, "Do what you think is the right thing to do for the economy." watch now VIDEO 8:28 08:28 Minneapolis Fed President Kashkari: 'Now is the time to start slowly moving' rates up Squawk Box Minneapolis Federal Reserve President Neel Kashkari said Wednesday that he thinks higher interest rates are needed now to bring down inflation and avoid more drastic increases later. In a CNBC interview, the central bank official called for a gradual approach that could start in September, though he did not commit to a timetable. Kashkari was one of three dissenters at last week's Federal Open Market Committee meeting who wanted a quarter percentage point rate hike. However, the other nine voters disagreed, voting to hold the benchmark funds rate in a range between 3.5%-3.75%. "Corporate earnings are through the roof. They're doing great. The consumer is hanging in there. The labor market is hanging in there. I look at this constellation and I say, what evidence do I have that monetary policy is particularly restrictive right now?" he told CNBC's Andrew Ross Sorkin in a live " Squawk Box " interview from the Aspen Ideas Festival in Colorado. "So, I argued now is the time to start slowly moving up as we get more data in," he said. The FOMC has been on hold all year as officials deliberate over the proper approach to policy with the labor market stabilizing but inflation holding well above the Fed's 2% target. Inflation data in June showed some improvement as tensions temporarily eased in the Middle East and oil prices pulled back. However, Kashkari said he remains uneasy about the situation and thinks the Fed needs to address what he called a series of supply shocks pressuring consumers. He added that he's not sure what the committee will do at its Sept. 15-16 meeting and said coming data points will be key. Markets pricing is titled slightly toward a rate hike next month, with a better chance coming in October. "I'm not calling for a dramatic increase in interest rates," he said. "I'm simply saying I don't see evidence of monetary policy [being] marginally restrictive right now, and I think we have more work to do to get inflation back down. And I would rather get going now in small steps than wait till later, then we have a really entrenched inflation problem and have to raise rates aggressively." The remarks come a day after Philadelphia Fed President Anna Paulson , who like Kashkari gets a vote this year on the FOMC, offered a differing view. Paulson told CNBC that she thinks there is evidence that the current interest rate level is "mildly restrictive" on economic conditions and favors holding steady as officials continue to evaluate the data. In addition, Paulson said voting to hold was "not a close call" for her at the meeting. The three "no" votes were the first during Chairman Kevin Warsh 's tenure. Kashkari, though, said Warsh, who in the past has expressed a preference for lower rates, did not pressure him. "He said to me, 'Do what you think is the right thing to do for the economy.' And I said, 'I really appreciate that.'" Kashkari said. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news. Subscribe to CNBC PRO Subscribe to Investing Club Licensing & Reprints CNBC Councils Select Personal Finance Join the CNBC Panel Closed Captioning Digital Products News Releases Internships Corrections About CNBC Site Map Podcasts Careers Help Contact News Tips Got a confidential news tip? We want to hear from you. Get In Touch CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Get this delivered to your inbox, and more info about our products and services. Advertise With Us Please Contact Us Ad Choices Privacy Policy Your Privacy Choices CA Notice Terms of Service © 2026 Versant Media, LLC. All Rights Reserved. A Versant Media Company. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Market Data Terms of Use and Disclaimers Data also provided by