From CNBC: 2024-09-23 09:29:24

Minneapolis Federal Reserve President Kashkari forecasts interest rate cuts to slow down after last week’s 50-point reduction. The decision, surprising to some, was made to reflect a shift from focusing on inflation to the softening labor market. Kashkari hints at smaller, more traditional rate adjustments moving forward.

Furthermore, Kashkari emphasizes the importance of maintaining a strong labor market and keeping a close eye on inflation data. While progress has been positive, the Federal Reserve remains vigilant about potential risks that may arise in the future. The rate cut was a significant step towards achieving a more neutral position on monetary policy, with the expectation of further reductions by the end of the year.

Atlanta Fed President Bostic echoes the sentiment of moving aggressively towards normalizing monetary policy due to rapid progress on inflation and labor market cooling. With an eye on potential fluctuations in inflation and the labor market, the Fed aims to strike a balance in policy decisions. Market pricing indicates a possibility of additional rate reductions by the end of the year.

Read more: Minneapolis Fed President Kashkari sees slower pace of rate cuts ahead