NEW YORK (Reuters) – Federal Reserve Bank of Minneapolis President Neel Kashkari said on Wednesday that job market demand stays strong and underlying inflation pressures probably haven’t peaked yet.
“I’ve seen little or no evidence in my region that the labor market is softening,” Kashkari said in a virtual appearance. “The primary issue I hear from businesses small and huge is that they’re struggling to seek out staff, how they’re having to pay more wages to maintain their employees and to draw employees.”
On the inflation front, Kashkari said the surge in overall prices could have hit its high point but underlying pressures are a unique story.
Inflation stripped of food and energy costs, “I’ve not yet seen much evidence that that has peaked,” he said.
(Reporting by Michael S. Derby; Editing by Chris Reese)
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