Federal Reserve Bank of Minneapolis President Neel Kashkari speaking in an interview with the Wall Street Journal:
- Base case is no more rate hikes
- If inflation seems more entrenched than we think, the first thing fed would do is hold for longer
- If inflation flares again that could justify rate hike
- In December had expected two rate cuts in 2024
- Hard to see that i would now expect more rate cuts
- Decision on rate cuts will depend on inflation data
- If economy continues to be healthy, why would we cut rates
- We want to avoid a downturn, have a soft landing
- US labor market is coming into better balance
Bolding above is mine. A good point from K. Beware of this.
