Federal Reserve's Kashkari: Two rate cuts this year still seem appropriate
Federal Reserve's Kashkari: The economy is slowing down, and the Fed needs to respond to the economic slowdown. Adjusting the policy interest rate in the short term may still be appropriate. The answer to the inflation issue will take some time to know, meanwhile, the data on economic slowdown is clear. Two rate cuts this year still seem appropriate, but if inflation rises due to tariffs, the Fed may pause rate cuts or even raise rates. Adjusting interest rate policy may be better than waiting. Unemployment rate data is very important, but the Fed knows that this data may be subject to revision.