May 7 (Reuters) - Minneapolis Federal Reserve Bank President Neel Kashkari on Tuesday said it is too soon to declare that inflation has definitely stalled out, and it is still possible the Fed will reduce interest rates this year if price pressures resume easing.
Inflation stuck above the Fed's 2% goal "is not the new normal," he said, adding the Fed will set interest rates to make sure that inflation does continue to fall.
"If we need to hold rates where they are for an extended period of time to tap the brakes on the economy, or if we even needed to raise, we would do what we needed to do to get inflation back down." (Reporting by Ann Saphir Editing by Chris Reese Editing by Chris Reese)
