Less than a week after deciding against an interest-rate cut, some Federal Reserve policymakers are signaling rising angst about a cooling U.S. labor market and a slowing economy, even as they continue to express uncertainty about the outlook for inflation, which remains stuck above the Fed’s 2% goal.
Minneapolis Fed President Neel Kashkari on Wednesday said that for him, it all adds up to a case for interest rate cuts in coming months.
“The economy is slowing, and that means in the near term it may become appropriate to start adjusting,” Kashkari said on CNBC’s Squawk Box, adding that two quarter-percentage-point rate cuts by the end of the year “seems reasonable to me.”
Howard Schneider and Michael S. Derby | Yahoo Finance