More on Fed’s Kashkari – sees possibility of only one Fed rate cut this year

I posted on remarks from Federal Reserve Bank of Minneapolis President Neel Kashkari here earlier:

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

The FOMC meet next on March 19 and 20, and Kashkari says he hasn’t yet decided on his forecast for rate cuts ahead, he may reduce the number of cuts he expects. In December he forecast two cuts in 2024, but:

• “It is hard for me, with the data that have come in, that I would be saying more cuts than I said in December”
• “It seems the base case: I’d be where I was in December, or potentially one fewer. But I haven’t decided”

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I posted earlier in the week a forecast for zero Fed rate cuts this year:

• Why the Fed won’t cut rates in 2024: US economy not slowing, Fed tailwind since December

But that’s not consensus, this is closer:

• Former New York Fed economist says 3 FOMC rate cuts this year is a reasonable base case

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