Fed's Kashkari says central bank will need to raise rates by 2023

According to Reuters- Minneapolis Federal Reserve BankFederal Reserve Bank President Neel Kashkari, he believes that the central bank will have to raise its policy rate to 3.9% by the end of 2023 and 4.4% by the end of 2023 to fight inflation.

Kashkari said that the Fed is far from declaring victory and needs to raise rates much higher than its current 2.25% -- 2.5% range, despite the cooling in price pressures in a government report released earlier Wednesday.

Markets are not realistic in expecting rate cuts early next year, he said. He said that the Fed won't do so until we're convinced that inflation is well on its way to the Fed's 2% target.