By Ann Saphir

(Reuters) – The Federal Reserve should increase its policy rate from 1.75% to 2% in this year’s range, Minneapolis Fed President Neel Kazhkari stated on Friday. This is to reduce inflation and put a halt to economic growth.

Kashkari wrote in an essay on the Minneapolis Fed’s site that data for this year could show supply and demande normalizing, and inflation going down by itself.

If the economy shifts to “high-pressure high inflation equilibrium”, then the U.S. central banks “will have to be more aggressive and change policy to a contractionary position in order to bring the economy back into a level that is consistent with our 2 percent inflation goal.”

As it pivoted from an economic policy that sought to contain the effects of the coronavirus pandemic, to one that combats inflation, the Fed raised its rates this week.

Kashkari made Friday’s comments indicating that he supports that path, a marked shift from six months ago when he was the Fed’s mostdovish member. However, he also indicated that he is open to rate increases if inflation becomes intransigent.

Kashkari stated that while the country is moving towards what I believe will be neutral policy, over the next year we will receive information to assist us in determining how far we need to go.