"Minneapolis Fed's Neel Kashkari Forecasts Limited Interest Rate Cuts Amid Tightened Policy"

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, expects the central bank to cut interest rates only two or three times this year, contrary to market expectations of more aggressive cuts. He emphasized the need to assess inflation data and economic growth before making decisions, and suggested that the real fed funds rate may not be as high as it appears when adjusted for inflation. Kashkari pointed to strong economic data and labor market growth as indicators that interest rates may not be exerting as much pressure on the economy as expected, providing more time to assess before reducing rates.