Fed's Kashkari expects two more rate cuts this year

OdailySep 19, 2025
#Macro
Minneapolis Federal Reserve Bank President Kashkari said he supported the Federal Reserve's decision to cut interest rates this week and wrote two more rate cuts into his personal forecast for this year. "I think the risk of a significant increase in the unemployment rate is enough to prompt the committee to take action to support the labor market," Kashkari wrote in an article published on the Fed's website on Friday. Federal Reserve officials cut interest rates by 25 basis points at their policy meeting on Wednesday, the first cut since December last year, citing the need to support a more fragile job market. The Minneapolis Fed president, who does not have a vote on monetary policy this year, is participating in discussions at the Federal Open Market Committee. He previously expected a cumulative rate cut of two times throughout 2025. The Fed will also hold policy meetings in October and December this year. Kashkari added that the Fed should not "pre-set a set path of rate cuts." He would support holding steady if the labor market is more resilient than it currently appears, or if inflation rises; he would even consider raising interest rates if economic conditions warrant it. (Golden Ten) [Odaily]
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Fed's Kashkari expects two more rate cuts this year

OdailySep 19, 2025
#Macro
Minneapolis Federal Reserve Bank President Kashkari said he supported the Federal Reserve's decision to cut interest rates this week and wrote two more rate cuts into his personal forecast for this year. "I think the risk of a significant increase in the unemployment rate is enough to prompt the committee to take action to support the labor market," Kashkari wrote in an article published on the Fed's website on Friday. Federal Reserve officials cut interest rates by 25 basis points at their policy meeting on Wednesday, the first cut since December last year, citing the need to support a more fragile job market. The Minneapolis Fed president, who does not have a vote on monetary policy this year, is participating in discussions at the Federal Open Market Committee. He previously expected a cumulative rate cut of two times throughout 2025. The Fed will also hold policy meetings in October and December this year. Kashkari added that the Fed should not "pre-set a set path of rate cuts." He would support holding steady if the labor market is more resilient than it currently appears, or if inflation rises; he would even consider raising interest rates if economic conditions warrant it. (Golden Ten) [Odaily]
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