Minneapolis Fed President Neel Kashkari's Special Remarks! When and How Much Will the Fed Cut?

The Fed continues to keep interest rates steady despite US President Donald Trump's persistent demands for interest rate cuts. Expectations for the first interest rate cut of 2025 intensified in September, with Fed Chair Jerome Powell citing economic uncertainty stemming from tariffs as the reason. At this point, while some FED members also support a rate cut in September, the last person to support a September rate cut was Minneapolis FED President Neel Kashkari. Speaking on CNBC's Squawk Box, Kashkari said the Fed may soon be forced to cut interest rates as signs of a slowing economy grow stronger. “The economy is slowing, which means adjustments may be appropriate in the near term.” At this point, Kashkari stated that two 25 basis point interest rate cuts by the end of 2025 would be appropriate, adding, “It seems reasonable to me.” “The latest data shows that the real underlying economy is slowing down. The economy is slowing down. While the impact of tariffs on inflation is still unclear, how long can we wait before the impact of tariffs becomes clear? Although uncertainty continues, interest rate cuts may begin in the short term. If inflation starts to rise because of the tariffs, the Fed could then stop cutting rates or even start raising them. Like Kashkari, San Francisco Fed President Mary Daly also thinks two rate cuts this year are probably appropriate. *This is not investment advice. Continue Reading: Minneapolis Fed President Neel Kashkari's Special Remarks! When and How Much Will the Fed Cut?