Federal Reserve Bank of Minneapolis President Neel Kashkari stated he expects the central bank to raise interest rates once more this year and again in 2027. Kashkari noted that the Fed's balance sheet functions most effectively when rates are near zero and described determining its optimal size as a complex issue, adding that revisiting the current balance sheet strategy is entirely reasonable. Kashkari also expressed optimism regarding artificial intelligence while acknowledging the need to consider associated risks. His comments highlight ongoing debates within the Federal Reserve about monetary policy trajectory and balance sheet management amid evolving technological developments.