Inflation is widespread, two top Federal Reserve officials cautioned in recent remarks, and bringing it back down to target may require short-term pain.
“There’s nothing we can do with interest rates that’s going to open up the Strait of Hormuz or bring oil prices down,” said Minneapolis Fed President Neel Kashkari during a Fox News interview Sunday. “But the inflation that the American people are feeling every day is much beyond just oil prices. It’s in all aspects of the economy. It’s in the services sector, for example, widely.”
Kashkari was among the dozen Fed policymakers who unanimously voted to hike the federal funds rate by a quarter of a percentage point last week. He noted that pressure on 10-year Treasury yields, which heavily im...