Federal Reserve Bank of Minneapolis President Neel Kashkari has voiced his support for a rate cut at each of the remaining Federal Open Market Committee (FOMC) meetings this year in October and December in order to address the risk of a weakening labor market.
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“I believe the risk of a sharp increase in unemployment warrants the committee taking some action to support the labor market,” Kashkari wrote on Friday.
Kashkari Downplays Inflation Risks
Kashkari doesn’t get to vote in this year’s FOMC meetings, but will have a vote in 2026. His support for two additional rate cuts in 2025 echoes the majority view among voting FOMC officials. That would put interest rates between 3.50% and 3.75%.
Furthermore, Kashkari expects inflation to stay around 3% unless tariff rates rise substantially or the supply of goods and services is disrupted. “For me, the more likely risk is a rapid further weakening of the labor market,” Kashkari wrote.
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