Fed's Kashkari Discusses Economic Indicators and Interest Rates

According to Odaily, Federal Reserve official Neel Kashkari commented on macroeconomic data, stating that the rise in the U.S. 10-year Treasury yield is not concerning and may be linked to the fiscal deficit. He emphasized the Federal Reserve's commitment to reducing inflation, noting significant uncertainty around the neutral interest rate level. Kashkari highlighted the importance of the current 4% unemployment rate, describing the labor market as strong and the economy as robust, with optimistic business prospects. Kashkari advised patience regarding U.S. tariff policies, suggesting that the current position allows for observation until more information on government policies is available. He indicated that favorable inflation data, coupled with a strong labor market, would lead him to support further interest rate cuts. He expressed skepticism about maintaining current rates if inflation decreases, barring any unexpected changes in administrative policies. Kashkari anticipates a moderate reduction in interest rates by the end of the year, with inflation expected to continue its downward trend in 2025.