Minneapolis Federal Reserve President Neel Kashkari emphasizes the need for interest rate cuts amid a slowing U.S. economy.
Economic Signals
In a CNBC interview, Kashkari pointed to signs of a slowing U.S. economy, particularly after the July jobs report showed a weakening labor market. This data has raised the odds of a September rate cut to 90%, and Kashkari suggests that it is time to adjust rates soon.
Labor Market Assessment
Kashkari commented on the shift in Fed views, which earlier considered the labor market strong enough to delay cuts until the impact of Trump's tariffs on inflation was clearer. He dismissed President Trump's claims regarding manipulated jobs data, standing by the accuracy of the statistics.
Consensus Among Fed Members
San Francisco Fed President Mary Daly and other Fed members have also expressed the need for rate cuts. These comments reflect growing agreement among Fed leaders that the economy is facing serious challenges, necessitating a reevaluation of their collective stance on rates.
Kashkari’s support for two rate cuts in 2025 illustrates the Fed's readiness to adapt to current economic challenges.
