Fed’s Kashkari states that the robust economy makes it harder to justify lowering interest rates

Fed’s Kashkari Highlights Economic Strength Amid Rate Cut Uncertainty

Neel Kashkari, President of the Minneapolis Federal Reserve, recently noted that the U.S. economy has shown unexpected strength despite elevated interest rates. This ongoing resilience, he explained, is making it more challenging for the Federal Reserve to determine the timing and scale of potential interest rate reductions this year.

During a virtual town hall organized by the Wisconsin Bankers Association, Kashkari remarked that while inflation is gradually declining, it still exceeds the central bank’s 2% goal. He also observed that although the job market has moderated, it has not exhibited major signs of distress.

“The economy has proven to be sturdier than I anticipated,” Kashkari commented, referencing the continued stability in economic indicators.