Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, expressed his openness to further interest rate cuts in December during a Bloomberg TV interview on Monday.
Known for his typically hawkish stance, Kashkari recognized the legitimacy of the debate surrounding a potential 25-basis-point cut in December.
The Federal Reserve began lowering interest rates in September, prompted by assurance that inflation would continue to decrease, and concerns that elevated borrowing costs were decelerating job market growth at an alarming rate.
Presently, with the policy rate lingering between 4.50% and 4.75%, policymakers continue to question the optimal reduction.
Kashkari is currently evaluating the impact of borrowing costs on the economy and the trajectory of inflation, expressing measured confidence in a gentle downward trend while acknowledging the enduring strength of the labor market.
Ahead of the Federal Reserve’s next meeting scheduled for December 17-18, policymakers will receive a new report on the targeted inflation indicator this Wednesday, along with the latest monthly job market assessment and a consumer price report.
