By Kanishka Singh
(Reuters) -Minneapolis Federal Reserve Bank President Neel Kashkari said on Sunday he expects higher inflation continuing over the next few months but warned that the U.S. central bank should not overreact to elevated inflation as it is likely to be temporary.
"The math suggests we're probably going to see somewhat higher readings over the next few months before they likely start to taper off," Kashkari told CBS News' "Face the Nation" in an interview on Sunday https://cbsn.ws/3wN0aj6.
"But my view is we also need to not overreact to some of these temporary factors, even though the pain is real," Kashkari said in the interview.
Kashkari on Tuesday said he expects more clarity on the economic outlook by the time the Fed ends its bond-buying program in mid-2022, and is keeping an "open mind" on the timing of any rate hikes to follow.
President Joe Biden's economic advisers defended his policies on Sunday amid rising inflation that they said was a global issue related to the COVID-19 pandemic, not a result of the administration's programs.
U.S. consumer prices rose 6.2% in October compared to a year earlier, the fastest annual rate in 31 years, driven by surges in the cost of gasoline and other goods.
When asked about Biden's pending decision on whether to reappoint Fed Chair Jerome Powell to another term, or choose Fed Governor Lael Brainard to succeed him, Kashkari said both were capable.
"Well, I think both Chair Powell and Gov. Brainard are outstanding, very seasoned, experienced monetary policy makers, and I think if either of them got the nod from President Biden, I think we would be in very good capable hands", Kashkari said.