Minneapolis Federal Reserve President Neel Kashkari believes Trump’s tariffs will not have a significant impact on long-term inflation. He advocates for multiple interest rate cuts, despite inflation running above the Fed’s 2% target. Kashkari predicts a weakening labor market and minimal tariff impact warrant easier policy.

Kashkari, though not a voter this year, supports lowering the benchmark borrowing level at each of the remaining Fed meetings. The committee approved a quarter percentage point cut by an 11-1 vote, with new Governor Stephen Miran present. Despite differing views among officials, Kashkari described the meeting as unremarkable.

In a CNBC interview, Kashkari discussed his switch to advocating for a total of three cuts this year, citing contained inflation expectations and easing housing inflation and wage growth. However, annual core inflation in August was at 3.1%, well above the Fed’s target, prompting questions about central bankers’ tolerance for higher inflation levels.

Read more at CNBC: Fed’s Kashkari advocates two more rate cuts this year