Kashkari: Robust Economy May Limit Rate Cuts

Federal Reserve Bank of Minneapolis President Neel Kashkari suggested that a stronger US economy and higher productivity growth might lead to fewer interest rate cuts than previously anticipated. Despite recent rate reductions, Kashkari emphasized the need to assess the impact of potential policies from the Trump administration and Congress on inflation before making further decisions. The Fed recently cut the benchmark rate to 4.5%-4.75%, but traders now expect fewer cuts due to robust economic growth and rising productivity.