Kashkari said that before starting the interest rate cut, the Fed is still in a favorable position and can take it slowly, observing the upcoming data; he pointed out that if interest rates are cut only once this year, it is likely to be before the end of the year.
On June 17, Caifeng News (Editor Huang Junzhi) reported that Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said last weekend that the Federal Reserve is actually in a favorable position before it starts cutting interest rates and can take it slowly and observe the upcoming data. Specifically, he said on a Sunday program, "We need to see more evidence that inflation is steadily falling to 2%. We are now in a very favorable position to slowly get more inflation data, more economic and labor market data, before we make any decisions."
He said on a Sunday program, "We need to see more evidence that inflation is steadily falling to 2%. We are now in a very favorable position to slowly get more inflation data, more economic and labor market data, before we make any decisions."
After the Federal Reserve's June interest rate meeting, it announced that it would stay on hold, but it is worth noting that the latest "dot chart" greatly reduced expectations for interest rate cuts: from three in March to only one. Specifically, 11 officials believe that interest rates will be cut at most once this year, and the remaining eight expect interest rates to be cut twice.
Federal Reserve officials warned that they need more confidence in the target of inflation slowing to 2% before they start relaxing policies, especially after progress stalled earlier this year. Powell also emphasized after the meeting that although he admitted that recent monthly inflation data had slowed, confidence had not yet reached the level of interest rate cuts.
Kashkari specifically pointed out in the program that if interest rates are cut only once this year, it is likely to be before the end of the year.
Waiting for inflation to continue cooling down.
In fact, there is still considerable consensus within the Federal Reserve on inflation issues: both hawkish and dovish officials believe that they need to "wait a little longer". In addition to the "big hawk" Kashkari, Loretta Mester, president of the Cleveland Reserve, also said last Friday that although the latest data is encouraging, she still believes that the inflation risks in the United States are biased towards the upside.
"We have made significant progress in inflation issues over the past two years. But the inflation rate is still too high," she said. "There is still more work to be done on inflation issues to convince people that inflation is on track to fall to 2%."
And Charles Evans, the representative of the dovish faction of the Federal Reserve, also said last Friday that the CPI in May was "very good", but this is only one month's data.
"After this week's data showed that inflation cooled down in May, I breathed a sigh of relief, but before I truly cut interest rates, I still hope to see 'more months' of similar data performance." he said.
Editor / jayden