Fed's Kashkari: It’s reasonable to predict Fed won’t cut rates until December
Minneapolis Federal Reserve President Neel Kashkari said on Sunday that it is a “reasonable prediction” that the Fed will wait until December to cut interest rates, adding that the central bank is in a very good position to get more data before making any decisions.
Key quotes
We need to see more evidence to convince US inflation is heading to 2%.
US economy is stronger than in other countries that are cutting rates.
Job market has performed better than expected.
May be more cooling in labor market yet to come, hope it will be modest.
Reasonable that rate cut could come in December.
We are in a very good position to take our time, get more data, before making a decision on rate.
Median projection is for one cut, that's likely to be toward end of the year.
We are in a high pressure economy in some dimensions, but some signs it's cooling.
Net effect of immigration in long-run on inflation is hard to judge
Best thing Fed can do for housing is to get inflation down.
Market reaction
The US Dollar Index (DXY) is trading 0.03% higher on the day at 105.55, as of writing.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
