Fed's Kashkari says central bank should raise interest rates now to avoid 'entrenched inflation problem'

Minneapolis Federal Reserve President Neel Kashkari on Wednesday outlined why he thinks the central bank should raise interest rates to curb persistent inflation and head off the need for more substantial monetary policy action at a later date. "I look at this constellation, and I say, ‘What evidence do I have that monetary policy is particularly restrictive right now?’ FED DISSENTERS WARN INFLATION COULD BECOME ENTRENCHED WITHOUT MONETARY POLICY TIGHTENING NOW"I'm not calling for a dramatic increase in interest rates," Kashkari explained. FED POLICYMAKERS LEAVE RATES UNCHANGED AMID ELEVATED UNCERTAINTYKashkari and the two other dissenters — Dallas Fed President Lorie Logan and Cleveland Fed President Beth Hammack — each outlined their rationale for voting in favor of higher interest rates in statements released Friday. The next meeting of the Federal Open Market Committee (FOMC), the Fed panel responsible for monetary policy moves, is scheduled for Sept. 15-16.