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Two FED Members Speak! One of the Most Hawkish Members, Kashkari, Revealed How Much Cut He Expects in the Next Meetings!

Author: Content Editor
The Federal Reserve (Fed) made its first rate cut last week, and this has fueled expectations of further cuts. Minneapolis Fed President Neel Kashkari expects interest rates to be 4.4% by the end of 2024 and 3.4% by 2025. He supports the rate cut and believes it was the right decision due to progress in inflation and the risk of rising unemployment. Kashkari, who was previously a hawkish policymaker, has reversed his stance and now considers the overall level of interest rates to be economically restrictive. He predicts another 50 basis point rate cut in 2024 and expects the Fed to make smaller, quarter-percentage point rate cuts in the future. Atlanta Fed President Raphael Bostic also expects aggressive moves to return to a neutral interest rate, suggesting the possibility of a rapid rate cut in the coming months. Both Kashkari and Bostic believe that inflation has fallen faster than expected and that the US economy is on a sustainable path towards price stability.

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