Kashkari says it is time to gradually raise rates as September Fed hike odds climb to 46%

Minneapolis Federal Reserve President Neel Kashkari said in a CNBC interview aired Wednesday, 14 Mordad 1405 (5 August 2026), that given persistent inflationary pressure, "I think now is the time to start a slow move towards raising interest rates." According to Arzdigital, Kashkari said current Fed policy is not restrictive enough and that the resilience of the US economy shows higher borrowing costs have not yet placed significant pressure on demand. Kansas City Fed President Jeff Schmid had previously expressed a similar view.

Following the remarks, the probability of a 25 basis point rate increase at the Federal Reserve's September meeting rose to 46% on the Polymarket prediction platform. The Federal Open Market Committee currently holds its policy rate in the 3.5% to 3.75% range. The Fed's rate path is one of the two main drivers of the dollar index and the global gold price, and by extension of Iran's currency and gold markets.