Federal Reserve Vice Chairman Philip Jefferson said inflation has remained high for an extended period and could become entrenched, requiring policymakers to assess economic data before deciding whether further rate increases are warranted. He said US economic activity and the labor market remain strong, while energy prices, rapid AI investment growth and tariffs are influencing the outlook. Minneapolis Fed President Neel Kashkari also said additional increases may be needed to control inflation, though he has no strong view on whether to raise rates at the October meeting. Kashkari’s projections called for a 25-basis-point increase this year and another in 2027. He said stronger-than-expected growth and persistent inflation could push rates above current expectations, while recent market volatility does not pose systemic risk and the Treasury market has absorbed the repricing of rate expectations.