It’s “reasonable” to predict just one interest rate cut, likely happening in December, said Minneapolis Federal Reserve President Neel Kashkari. However, “we need to see more evidence to convince us that inflation is well on [the] way back down to 2%,” he told CBS’ “Face the Nation.”
The Fed kept the benchmark policy rate steady at 5.25% to 5.5%, where it’s remained since last July, at its meeting last week. Projections also stated that the median forecast from all 19 American central bankers was for just one interest rate cut in 2024.
“We’re in a very good position right now to take our time, get more inflation data, get more data on the economy, on the labor market, before we have to make any decisions,” Kashkari said. “We’re in a strong position, but if you just said there’s going to be one cut, which is what the median indicated, that would likely be toward the end of the year.”
