Minneapolis Federal Reserve Bank President Neel Kashkari said in an essay on Tuesday he sees a "soft landing" for the U.S. economy likelier than not, but also sees a 40% chance that the Fed will need to raise rates "meaningfully" higher to beat inflation.

The Fed last week held its policy rate steady in a range of 5.25%-5.50%, but most policymakers signaled they believe one more interest-rate hike by the end of the year will likely be appropriate. Kashkari said Monday he is in that majority.

(Reporting by Ann Saphir;)