Minneapolis Federal Reserve Bank President Neel Kashkari expressed on Monday that he anticipates "modest" interest rate cuts in the upcoming quarters, but may advocate for faster cuts if labor markets weaken significantly.
"Right now, I see modest cuts over the next quarters...Evidence of quick labor market weakening could lead to faster rate cuts," Kashkari said. Speaking at the Chippewa Falls Area Chamber of Commerce, the policymaker mentioned that inflation was not driven by the labor market and that the Fed "definitely" wanted to avoid a recession.
"A rise in budget deficit would mean that on the margin interest rates would be higher," he further noted while citing current rates as a "brake on the economy."
