According to Jinshi Data, Federal Reserve Chairman Kashkari said he expects "modest" interest rate cuts in the coming quarters, but a sharp deterioration in the job market may prompt him to advocate for faster rate cuts.
Kashkari said that if policymakers saw real evidence of a rapidly weakening job market, they might need to cut interest rates faster than currently anticipated.
He believes interest rates are still putting the brakes on the economy, but the economy's strong performance suggests the neutral rate may be higher than in the past.
Kashkari said he hopes to maintain a strong labor market while inflation falls back to the 2% target level, and the appropriate interest rate path will depend on the data.