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Fed’s Kashkari says its reasonable that rate cut could come in December

Minneapolis Federal Reserve
President Neel Kashkari spoke on Sunday, US time, with US media, CBS’ “Face
the Nation”.

We need to see more evidence to convince US inflation is heading to
2%US economy is
stronger than in other countries that are cutting ratesJob market has
performed better than expectedMay be more cooling
in labor market yet to come, hope it will be modestReasonable that rate
cut could come in DecemberWe are in a very
good position to take our time, get more data, before making a
decision on rateMedian projection is
for one cut, that’s likely to be toward end of the year
We are in a high pressure economy in some dimensions, but some signs
it’s coolingNet effect of
immigration in long-run on inflation is hard to judgeBest thing Fed can
do for housing is to get inflation down

Kashkari flipped to more hawkish than his colleagues much earlier than they did. Given the developments seen in US inflation this year he was correct to do so. He is dialling back that hawkishness a touch but he has clearly not leaped onto any September rate cut bandwagon.

This article was written by Eamonn Sheridan at www.forexlive.com.

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