Neel Kashkari, president of the Minneapolis Fed, stated that given the continued strength of underlying inflation, the hurdle for the Federal Reserve to veer away from tightening monetary policy is "quite high."
We could always cease what we're doing if the economy took a serious turn for the worse.
In a town hall meeting held on Wednesday in Rhinelander, Wisconsin, Kashkari said, "We could always — if we needed to — reverse
what we're doing, if we believed that inflation was heading back down very, very fast.
The underlying inflation—services inflation, wage inflation, and labour market inflation—has yet to show signs of slowing, according to him, so the bar for such a move is quite high.
To combat the biggest inflation in forty years, the Fed this year increased its benchmark interest rate by three percentage points.