The Fed’s Kashkari said officials were “far” from giving up on the fight against inflation.

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, hinted Friday that markets had gotten ahead on anticipation that the central bank – which has raised interest rates rapidly this year – would soon start to pull back.

“I’m surprised by the markets interpretation,” Kashkari said in an interview. “The committee is united in our determination to bring inflation down to 2%, and I think we will continue to do what we need to do until we are satisfied that inflation is indeed coming back down to 2% – and we are far from it.

Fed officials raised interest rates by three-quarters of a percentage point this week, their second straight increase in supersized rates and a move that took their policy to a range of 2.25 to 2.5%. This is roughly what policymakers see as a neutral framework, which neither fuels nor slows growth, and further increases in interest rates will begin to actively dampen the economy.

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