Fed Kashkari says base case no more hikes, but higher for longer if inflation entrenched

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.

This article was written by Eamonn Sheridan at www.forexlive.com. Source