Neel Kashkari, president of the Federal Reserve Bank of Minneapolis. Who has joined other Federal Reserve officials in supporting interest rate cuts, saying two cuts in 2025 seem right.
In a CNBC interview, he pointed to signs of a slowing US economy. Especially after the July jobs report showed a weakening labor market. This has pushed the odds of a September rate cut to 90%, with Kashkari suggesting it’s time to adjust rates soon.
Kashkari Responds to Economic Signals
His comments mark a shift from earlier Fed views that the labor market was strong enough to delay cuts until the impact of Trump’s tariffs on inflation was clearer.
Kashkari dismissed claims by President Trump that the jobs data was manipulated, standing by the numbers and avoiding talk about Trump’s personnel picks.
San Francisco Fed President Mary Daly also recently signaled it’s time for a rate cut. Showing growing agreement among Fed leaders. The economy’s taking a hit, with the latest jobs report showing clear signs of trouble. Pushing the Fed to reconsider its no-rate-cut stance.
Neel Kashkari’s support for two rate cuts this year signals the Fed’s gearing up to face these economic challenges directly.
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