Minneapolis Fed President Neel Kashkari stated he anticipates a rate hike in 2024, pushing back against market consensus that had been leaning toward rate cuts as the dominant next move. Kashkari cited continued inflationary pressure as the key driver behind his view, suggesting the Fed's work is not done even as headline CPI has moderated from peak levels.

Kashkari is a voting member whose hawkish tilt has historical precedent — he has repeatedly surprised markets with more aggressive stances than the median FOMC participant. His comments add to a growing chorus of Fed speakers tempering expectations for imminent cuts, which many market participants had been pricing in for mid-2024.

The second-order impact lands hardest on rate-sensitive assets: long-duration Treasuries (TLT), rate-sensitive equities like utilities and REITs, and growth stocks whose valuations rest heavily on low discount rates. If the Fed's next move is genuinely a hike rather than a cut, current equity multiples in high-P/E sectors face compression pressure.

The key tension is whether Kashkari's view represents a hawkish outlier or a signal of broader committee drift. The next CPI print and dot plot revision will be critical arbiters. Until then, the risk is asymmetric for assets priced for cuts — a hike materializing would be a larger shock than a simple delay.