Fed Official Signals Prolonged High Interest Rates, Regional Banks Slide

Neel Kashkari, a member of the Federal Reserve, stated that the central bank is unlikely to cut its benchmark interest rate anytime soon, indicating that high interest rates could persist for a while. The Fed has raised interest rates 11 times since March 2022 to combat inflation, and Kashkari believes that the current rate could be maintained through the end of the year and beyond. While inflation has decreased, it remains above the Fed's target, and Kashkari emphasized the need for it to return to 2% before considering rate cuts.