Kashkari: act on rates now or pay a steeper price later
The Fed held rates steady, but uncertainty isn’t over.
Jay Lessard of Sonoran Lending says mortgage rates could ease later this year if inflation cools, though geopolitical tensions and rising Treasury yields remain key risks.https://t.co/MIUEIePz9J
— Mortgage Professional America Magazine (@MPAMagazineUS) July 30, 2026
Supply shocks and the case for early action
Kashkari’s argument centers on the view that monetary policy has not yet become meaningfully restrictive. He pointed to robust corporate earnings, resilient consumer spending, and a labor market that continues to hold as evidence that current borrowing costs are not yet delivering the restraint needed to return inflation to the Fed’s 2% target.
“What evidence do I have that monetary policy is particularly restrictive right now?” he told CNBC.
Although June offered some relief as oil prices temporarily retreated, he said a sequence of supply-side disruptions, including tariff effects and energy market volatility tied to ongoing Middle East tensions, had not eased enough to change the calculus.
Kashkari was careful to distinguish his position from an aggressive tightening call.
“I’m not calling for a dramatic increase in interest rates,” he said.
