🚨 Two to zero cuts for 2024: Federal Reserve Bank of Minneapolis President Neel Kashkari
Kashkari said it’s likely the central bank will keep interest rates where they are “for an extended period of time” until officials are certain inflation is on track to their target.
In an essay published earlier Tuesday, the Minneapolis Fed chief said recent inflation data raise questions about whether monetary policy is restrictive enough to fully return price growth to 2%, the rate policymakers see as the sweet spot in a healthy economy.
“The most likely scenario is we sit here for an extended period of time,” he said Tuesday at the Milken Institute Global Conference. “If inflation starts to tick back down or we saw some marked weakening in the labor market then that might cause us to cut back on interest rates.”
“Or if we get convinced eventually that inflation is embedded or entrenched now at 3% and that we need to go higher, we would do that if we needed to,” he added.
Kashkari, who penciled in two rates cuts for this year when Fed officials met in March, said Tuesday that he’ll forecast anywhere from two to zero cuts for 2024 when officials next meet in June, based on incoming inflation data.
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Source: Bloomberg