Fed's Kashkari calls for sustained inflation progress before rate cuts

Minneapolis Federal Reserve President Neel Kashkari has indicated that the Federal Reserve should wait for significant progress in inflation before considering cutting interest rates. He emphasized the need for "many more months" of positive inflation data before the Fed can contemplate easing monetary policy. Kashkari also mentioned that if inflation does not decrease further, the central bank might still need to raise rates.

Kashkari's comments align with a growing trend among major central banks, including the European Central Bank, which is expected to lower rates before the Fed. He stressed the importance of not rushing into rate cuts and suggested that the Fed may need to maintain steady interest rates for an extended period, potentially throughout the entire year. Despite the cautious stance, Kashkari expressed confidence in the Fed's ability to achieve its 2% inflation target.