Minneapolis Federal Reserve President Neel Kashkari said on Wednesday that given the ongoing effort to bring inflation back to target, he expects the Fed to raise rates again depending on how the economy performs.

Speaking at an event in New York, Kashkari noted that including more rate hike expectations in the September Federal Open Market Committee (FOMC) meeting projections was "just a snapshot in time based on what we knew on the Wednesday of that meeting."

He said his basic view on inflation data is that "inflation is still too high," and the latest round of data has not changed that picture.

Kashkari added that during his more than a decade at the Fed, "if someone had asked me in the first five years whether we would experience five years of high inflation, I would have said absolutely not 鈥?that simply could not happen; yet here we are."

But he also stressed: "I know that monetary policy is effective" and can bring inflation back to target.

On Tuesday, market expectations for the future rate hike path cooled after New York Fed President John Williams said that while he expects another hike this year, there is no urgent need for further tightening given that a rate increase was just implemented at the September 15-16 FOMC meeting.

At the September meeting, Fed officials raised the overnight rate target by 25 basis points to a range of 3.75% to 4%, aiming to ease inflation pressures that have exceeded the Fed's 2% target for more than five consecutive years.

Fed officials also believed that strong overall growth data and a stable labor market gave them room to focus on the inflation challenge.

At the September meeting where the rate hike was announced, officials also projected one more hike before the end of the year. But before Williams' comments on Tuesday, financial markets had expected a more aggressive tightening pace.

As the Fed keeps raising rates, bond yields have also surged; in theory, this helps restrain economic activity and assists the Fed in curbing rising inflation.

Fed officials attribute the rise in yields to multiple factors: optimistic expectations for the economic outlook, competition for capital driven by strong investment in artificial intelligence, and uncertainty from Middle East conflict disrupting energy markets.

Kashkari said: "I don't want to blindly ignore the signals the market is sending, because current market signals suggest policy tightening may need to go further than we expect."

He added: "I need to pay attention to these signals without blindly following them, because these market judgments are often influenced by many different factors."