Minneapolis Federal Reserve Bank President Neel Kashkari said that a December interest-rate cut remains a reasonable option. He emphasized the importance of understanding the economy's current trajectory, noting the balance between inflation trends and economic pressures.
"Right now, knowing what I know today, still considering a 25-basis-point cut in December, it''s a reasonable debate for us to have," Bloomberg cited Kashkari as saying. He is said to have acknowledged that the labor market remains robust, while inflation appears to be easing gradually.
Kashkari also highlighted the need for the government to ensure a sustainable fiscal path and explore the possibility that the natural rate of interest might be higher than previously estimated, meaning current policies may not be as restrictive as expected.
