Neel Kashkari, Minneapolis Fed President, endorses a 50bps interest rate cut due to shifting risks towards weakening labor market.

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, endorsed the recent 50 basis point interest rate cut, calling it the "right decision." He highlighted progress in curbing inflation and noted the increased risk of rising unemployment. Kashkari emphasized that the balance of risks has shifted toward a potential weakening of the labor market, justifying the need for a lower federal funds rate, the Fed's primary policy tool.

September 23, 2024
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