On Monday, Neel Kashkari, the U.S. Federal Reserve Bank of Minneapolis President, said more rate cuts likely lie ahead for the central bank as the 2% inflation target looms into sight.
“As of right now, it appears likely that further modest reductions in our policy rate will be appropriate in the coming quarters to achieve both sides of our mandate,” Kashkari said in a speech delivered before a conference held by the Central Bank of the Argentine Republic. He added, “Ultimately, the path ahead for a policy will be driven by the actual economic, inflation, and labor market data.”
Kashkari said that the current stance of monetary policy, with the federal funds rate range between 4.75% and 5%, remains restrictive of growth, although by how much is unclear.
He said the Fed is “in the final stages of bringing inflation down to our 2% target,” while noting recent strong job market data shows the labor sector remains strong and is not on the verge of a rapid slowdown.
Kashkari spoke as the Fed is weighing how much further it can lower its interest rate target amid moderating price pressures and a still-strong economy.
(Source: ReutersReuters)
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment. Read Full Bio
