Fed's Kashkari: I see modest cuts over the next quarters
|Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari noted on Monday that while the Fed is on the lookout for a rapid destabilization in the US labor market, investors should expect a modest pace of rate cuts over the next few quarters.
Key highlights
We definitely want to avoid recession, saw signs of labor market weakening, that's why the Fed cut by 50 bps.
Resilience makes me wonder if the neutral rate is higher.
Evidence of quick labor market weakening could lead to faster rate cuts.
Right now, I see modest cuts over the next quarters.
It has been surprising that geopolitics hasn't had more oil impact.
By many measures, excess savings have been spent down.
Monetary policy's role in bringing down inflation was probably mainly in anchoring inflation expectations, not in reducing demand.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.