Fed's Kashkari: Would prefer small rate hikes now rather than waiting

July 31 (Reuters) - Minneapolis Federal Reserve President Neel Kashkari said on Friday he dissented at this week's Fed policy meeting in favor of a quarter-percentage-point interest rate increase because he would prefer to start a potential series of small adjustments now to contain inflation that has been above target for five years.

"To manage against the risk that high inflation could become entrenched, I would rather tighten policy incrementally as we gather more data on the path of inflation and employment," Kashkari said in a statement laying out his reasons for dissenting with the Federal Open Market Committee's decision to leave rates unchanged in a range of 3.50% to 3.75%.

"If inflation remains elevated, in my view, a potential series of small policy moves would be better than waiting and eventually concluding that even bolder actions were necessary," he said. "On the other hand, if inflation durably fades, a strategy of small policy steps would allow the FOMC to slow or pause subsequent adjustments without unnecessary impact on the real economy."