Kashkari said Monday that he expects to dial down the pace of interest rate reductions after the central bank eased policy by a half percentage point last week.
Minneapolis Fed President Neel Kashkari said Monday that he expects policymakers to dial down the pace of interest rate cuts after last week's half percentage point reduction.
"Right now, we still have a strong, healthy labor market. But I want to keep it a strong, healthy labor market, and a lot of the recent inflation data is coming in looking very positive that we're on our way back to 2%," he said."So I don't think you're going to find anybody at the Federal Reserve who declares mission accomplished, but we are paying attention to what risks are most likely to materialize in the near future.
The rate cut last week signaled that the Fed is on its way to normalizing rates and bringing them back to a"neutral" position that neither pushes nor restricts growth. In their latest economic projections, FOMC members indicated that rate is probably around 2.9%; the current fed funds rate is targeted between 4.75% and 5%.
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