Kashkari signals rates may need to rise further

Kashkari said the Fed would take the necessary steps to return inflation to its target, adding that the key question is ultimately how high interest rates need to go and that he does not yet know the answer.

The Fed raised interest rates in September for the first time in nearly three years, while most officials expect at least one more increase by the end of the year. Kashkari was one of three Fed officials who supported a 25-basis-point rate hike at the July meeting. Market expectations for another rate increase in October have declined following softer-than-expected inflation data and cautious remarks from some Fed officials.