Fed's Kashkari on rates – impact on $EURUSD and carry trades?

Just saw Kashkari's comments about the Fed potentially needing to hold rates higher for longer if inflation persists. It's not a new hawkish take, but the emphasis on 'longer' really stuck out to me, especially after the latest CPI print came in a bit hotter than some expected.

My initial thought goes to the dollar. If the market starts pricing in a more sustained rate differential, that could put a bit of a bid under $USD, couldn't it? I'm watching $EURUSD particularly closely now. My watchlist for carry opportunities is also getting a re-evaluation; if the higher-for-longer narrative solidifies, it changes the risk/reward for chasing yield in some of the more volatile pairs. Anyone else thinking similarly about how this could play out in the near term for FX, especially given the $PYUSD trading around 0.99974 today?