Minneapolis Federal Reserve President Neel Kashkari said on Monday that he is still struggling to decide whether he will vote to raise interest rates at the central bank's meeting next month or pause rate hikes.
Kashkari also said services inflation remains a root problem and may push inflation to a reading of 6% before it can be returned to the Fed's 2% target.
The Fed raised interest rates for the 10th meeting in a row earlier this month, lifting the benchmark overnight rate to a range of 5% to 5.25%.
In a statement released it said that policymakers are willing to leave the door open to halting further hikes while they assess how inflation responds and to see how much recent pressure on the banking system is on the economy.
Kashkari, whose FOMC member last year emerged as one of the most hawkish policymakers, said he still sees little evidence that the banking system's turmoil has had a tangible impact on the availability of credit.
At the same time, Kashkari reiterated his call for regulators to impose stricter capital requirements on U.S. banks. If SVB and other banks that collapsed recently "have more equity capital, their depositors can be reassured because the banks can absorb losses".
