According to Jinshi Data, Federal Reserve's Kashkari stated that he expects 'moderate' rate cuts in the coming quarters, although a sharp deterioration in the labor market may prompt him to advocate for faster cuts.
Kashkari stated that if he sees real evidence of a rapid weakening in the labor market, policy makers may need to lower interest rates faster than currently expected.
He believes that interest rates are still putting the brakes on the economy, but the strong performance of the economy suggests that the neutral rate may be higher than in the past.
Kashkari expressed a desire to maintain a strong labor market while inflation falls back to the target level of 2%, and the appropriate path for interest rates will depend on the data.
