Minneapolis Fed President Neel Kashkari has shared his expectations regarding interest rate cuts in 2025, highlighting the possibility of a reduction as early as September.
General Expectations of the Fed
The Federal Reserve (Fed) left interest rates unchanged in June, but changes can be expected in the coming months, particularly in July and September. Despite positive economic data, the Fed is cautious due to potential impacts from tariffs.
Neel Kashkari's Forecast
Neel Kashkari, president of the Minneapolis Fed, expects two interest rate cuts in 2025, the first likely in September. He noted that falling inflation could facilitate a decision to cut rates. However, if tariffs negatively impact the economy, the Fed may pause the reduction process.
Opinion on Cryptocurrencies
Kashkari, known for his skeptical view of cryptocurrencies, described them as worthless and fraudulent. This position may reflect the general attitude of some Fed members towards digital currencies, seen as risky assets.
As economic indicators evolve, the Fed appears poised for possible rate cuts in 2025, responding to inflation dynamics and global economic factors.