Minneapolis Fed President Kashkari: Policy Rate Close to Neutral Level

Emphasis on Neutral Level in Monetary Policy Minneapolis Fed President Neel Kashkari stated that the Federal Reserve's current policy interest rate is very close to the "neutral" level, which neither stimulates nor restricts the economy.
Kashkari emphasized that this situation could indicate limited room for future interest rate cuts.
Evaluating recent monetary policy steps, Kashkari said, "We have lowered rates significantly over the last few years.
My guess is we are quite close to the neutral level in monetary policy." This assessment is interpreted as a sign that the Fed may be nearing the end of its aggressive easing cycle.
Uncertainty in Inflation and the Labor Market Kashkari also addressed risks in the macroeconomic outlook, pointing to uncertainties regarding whether inflation will fully return to the 2% target and the future trajectory of the unemployment rate.
Maintaining a cautious stance on the labor market, Kashkari noted that data must be closely monitored.
These statements by Kashkari align with the views of other Fed officials who have recently delivered more cautious and hawkish messages.
Market analysts suggest these messages strengthen expectations that the Fed may slow the pace of interest rate cuts in upcoming meetings.