Neel Kashkari, Speech: Q&A at Journal of Financial Regulation Conference

“We are seeing an inflation story, in my opinions, that is dragging wages up rather than the other way around, and businesses are saying, “Oh my gosh, we’ve got these cost increases.” It’s being caused by supply chains and other factors, not a wage-driven story yet, but wages are climbing. And the risk is that this goes from being a supply-driven inflation story to a wage-driven inflation story, and it becomes more embedded, and then it becomes harder for us to break it and bring it back down. So it’s concerning that it’s spreading across the economy and it just means that we do have to continue to act with urgency.”