US Fed says key rate may grow to over 4.75%

The US Federal Reserve may need to push its benchmark policy rate above 4.75% if underlying inflation does not stop rising, Minneapolis Federal Reserve Bank President Neel Kashkari said on October 19, Report informs referring to Reuters.

"I've said publicly that I could easily see us getting into the mid-4%s early next year," Kashkari said at a panel at the Women Corporate Directors, Minnesota Chapter, in Minneapolis.

"But if we don't see progress in underlying inflation or core inflation, I don't see why I would advocate stopping at 4.5%, or 4.75% or something like that. We need to see actual progress in core inflation and services inflation and we are not seeing it yet."