Fed Officials Signal No Rate Cuts Until Sustained Inflation Progress

Minneapolis Federal Reserve President Neel Kashkari stated that the Fed should wait for several more months of positive inflation data before considering interest rate cuts, and even suggested that rate hikes are possible if inflation does not decrease further. Kashkari emphasized the importance of patience in achieving the Fed's 2% inflation target and noted that he does not see an immediate need for rate cuts. Divergence in interest rate outlooks has emerged among major central banks, with the European Central Bank and the Bank of England expected to cut rates sooner than the Fed.