President of the Federal Reserve Bank of Minneapolis Neel Kashkari said on Wednesday that today's U.S. inflation report, on the headline level, confirms the path the Fed's policymakers are on.
The official added that he has confidence that inflation is headed in the right direction but it is necessary to wait.
Kashkari, however, acknowledged that there is tremendous uncertainty about where the neutral rate is. "The longer the economy performs well, the more I believe that the neutral rate is higher," he added.
The chief of the Minneapolis Fed also noted that there are still six weeks before the Fed's next meeting with more data to come ahead of decision-making.