The president of the Bank of the Federal Reserve of Minneapolis, Neel Kashkarihe said he remained in his opinion that Inflation cooling would allow Fed to cut its interest rate twice this yearstarting in September.
Outstanding statements
- He continues waiting for two feat cuts in 2025, with the possible first cut in September.
- If the Fed cuts in September and the effect of tariffs manifests later, it could pause feat cuts.
- Official data so far reveal only a modest impact of tariffs on prices, activity and labor market.
- It is likely that an inflationary impulse will be coming, but current inflation indicates renewed progress towards the 2%target.
- More time is needed to determine whether the effects of the commercial war are delayed or if they will be less than thought.
- Stating real inflation and real economic data without compromising a relaxation policy path in case the effects of tariffs are delayed.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
