Federal Reserve's Kashkari: Does not support last month's rate cut, taking a wait-and-see approach to the December decision.
TL;DR
Fed's Kashkari opposed the last rate cut and is undecided on December's decision, citing strong economic resilience and unchanged data since October. He remains cautious, weighing options for future actions.
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On November 14, Minneapolis Federal Reserve President Neel Kashkari stated that he did not support the Fed's previous rate-cutting decision, but remained cautiously optimistic about the best course of action at the December meeting. He said on Thursday: "Based on the scattered evidence and data we have, the fundamental resilience of economic activity is stronger than I expected." He added that the Fed should have paused rate cuts at its October meeting. Since then, available data suggests the economic situation has "remained largely unchanged."
Regarding the upcoming December interest rate decision, Kashkari stated, "I can offer reasons for a rate cut based on the data, or I can offer reasons for maintaining the current rate; we'll have to wait and see." Kashkari had previously indicated after the September meeting that he expected two more rate cuts in 2025. (Jinshi)