Neel Kashkari said further interest-rate increases may be needed as the economy moves into 2027, but he did not commit to a hike at the Federal Reserve’s October 27–28, 2026, meeting. His October 1 remarks were his personal outlook—not a decision by the Federal Open Market Committee (FOMC).
What did Kashkari say about another rate hike?
In a Reuters interview published October 1, 2026, Minneapolis Fed President Neel Kashkari said he was open to further increases as the economy moved into 2027. Asked whether the Fed should raise rates at its October meeting, he said, “I’m open-minded” and “I don’t have a strong view.” The remarks reflected his assessment at the time, not a commitment about the meeting’s outcome. Reuters interview republished by Investing.com.
Kashkari said data since the September meeting suggested the economy was doing better than he had expected, while inflation remained too elevated. His comments therefore conveyed two things at once: he saw a case for more tightening, but he was not certain about the timing of the next move.
Will the Fed raise rates in October?
As of October 3, 2026, the October 27–28 meeting had not taken place, so there was no October decision to report. Kashkari’s interview alone does not establish whether the FOMC will raise rates. The committee—not any one regional Fed president—sets the federal funds rate target range. It has 12 members and holds eight regularly scheduled meetings each year. See the Fed’s FOMC overview for how the committee works and its scheduled meeting dates.
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The most recent decision at the time of the interview was already official: on September 16, 2026, the FOMC voted 12–0 to raise the federal funds target range by 0.25 percentage point, to 3.75%–4.00%. The committee’s statement said economic activity was expanding at a solid pace and inflation remained elevated. It also described uncertainty as elevated, with resilient domestic spending, strong productivity growth, robust capital investment, and job gains keeping pace with the workforce. Those were the committee’s stated conditions for its September decision, not a guarantee of what it would do in October. September 16 FOMC statement.
How do Kashkari’s outlook and the Fed’s projections differ?
Kashkari’s interview comments, his individual projections, and the FOMC’s completed September decision have different status. The September Summary of Economic Projections reported a median federal funds rate projection of 4.1% for the end of 2026 and 4.1% for the end of 2027. Those medians summarize participants’ individual assessments of appropriate policy; they are not a promise or a collective committee plan. September 2026 Summary of Economic Projections.
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| Signal | Status | Timing and meaning |
|---|---|---|
| FOMC rate decision | Completed, unanimous 12–0 committee action | On September 16, the target range rose by 0.25 percentage point to 3.75%–4.00%. |
| September rate projections | Individual participants’ assessments; the median is not a committee promise | The median projected federal funds rate was 4.1% at year-end 2026 and 4.1% at year-end 2027. |
| Kashkari’s October 1 interview | One policymaker’s current outlook | He said more increases might be needed into 2027, but he had no strong view on whether to act at the October meeting. |
The projections page explains that each participant’s figures represent that person’s assessment of the most likely outcomes under their own view of appropriate monetary policy. A projection can therefore indicate an expected policy path without binding the participant—or the committee—to that path. FOMC projections and explanatory notes.
Why has Kashkari argued for higher rates?
Kashkari’s July dissent provides context for his preference for further tightening. In his official statement, he wrote: “I dissented against the FOMC’s policy action this week because I preferred to raise the target range for the federal funds rate by 0.25 percentage point.” He argued that repeated supply shocks could risk embedding higher inflation and that gradual increases might be preferable to waiting until larger moves were necessary. He also said the committee could slow or pause increases if inflation durably faded. Kashkari’s July 2026 dissent statement.
That earlier dissent helps explain his inclination, but it is not the same as a firm position on the October meeting. His October interview left that timing question open.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What could a rate change mean for household finances?
The federal funds rate is a policy rate, not a direct quote for a household’s mortgage, savings account, credit card, or investment return. The Federal Reserve says changes in the federal funds rate can influence other short- and long-term interest rates and, through credit conditions, affect employment, output, and prices. The size and timing of any effect on a particular product or household depend on factors beyond Kashkari’s comments; the interview does not establish a specific forecast for mortgage rates, savings yields, or asset prices. For the Fed’s explanation of the transmission mechanism, see its monetary-policy and FOMC overview.
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