Fed's Kashkari: Rate cuts may not be needed this year

Federal Reserve Kashkari said that if inflation progress stalls, especially if the economy remains strong, interest rates may not be needed this year. Kashkari said at the event on Thursday: "My forecast in March was that if inflation continued to fall back to the 2% target level, there would be two interest rate cuts this year. But if the inflation trend continues to be sideways, that would make I question whether we need to cut rates." He noted that January and February inflation data were "a little concerning" and said he would need to see more progress on prices to be confident that inflation is moving toward the Fed's 2% target. development before considering a rate cut. He stressed the importance of using inflation data as a guide for interest rate decisions.