Minneapolis Federal Reserve President Neel Kashkari stated in an interview on Tuesday that he would need to see “many months” of low inflation in the U.S. before considering an interest rate cut.
“We need many more months of positive inflation data to feel confident it’s the right time to reduce rates,” Kashkari told CNBC. He is scheduled to give a speech later that day.
Tim Duy, chief U.S. economist at SGH Macro Advisers, mentioned that the earliest the Fed might cut rates would be September, unless there’s an unexpected significant slowdown in the labor market. However, Fed Governor Christopher Waller expressed doubts about a September cut last week.
According to the CME FedWatch tool, which uses fed funds futures contracts, the market slightly expects the first rate cut to happen in September.
