Bloomberg — Federal Reserve Bank of Minneapolis President Neel Kashkari said the central bank is in a good position to take its time and watch incoming data before starting to cut interest rates.
“We need to see more evidence to convince us that inflation is on track to get back to 2%,” Kashkari said Sunday on CBS’ Face the Nation.
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“We are in a very good position right now to take our time, get more data on inflation, get more data on the economy, on the labor market, before making any decisions.”
Fed policymakers last week lowered their forecast for rate cuts this year to one, down from three estimated in March.
They have warned that they need to be more confident that inflation is slowing towards the 2% target before starting to ease policy, especially after progress stalled earlier this year.
Kashkari said that if there were a single rate cut this year, it would likely come towards the end of the year.
On the morning of the Federal Reserve’s decision, data showed that underlying consumer price growth, which excludes the volatile food and energy categories, slowed for the second straight month.
