The lone Fed dissenter against its latest interest rate hike told CNBC on Monday he voted no because inflation is still below the central bank's 2 percent target and the labor market keeps improving.
"Why do anything?" asked Minneapolis Federal Reserve President Neel Kashkari during an interview on "Squawk Box."
Inflation has "a lot of room" to rise to the Fed's target, and it can even rise a little above 2 percent without creating worries about an overheated economy, he said. "For the last five or six years, the Federal Reserve keeps predicting inflation is around the corner. And those predictions end up being wrong."
Since the Fed's January meeting, core inflation has been moving "sideways," remaining around 1.7 percent, said Kashkari, a voting member this year on the central bank's policymaking committee. In the post-meeting economic summary last week, the Fed said it sees a slight uptick in inflation this year to 1.9 percent, with a longer-term trend toward the central bank's 2 percent target.