Fed’s Kashkari Supports Two Rate Cuts in 2025 Amid Economic Slowdown

Minneapolis Federal Reserve President Neel Kashkari has expressed growing concern about an economic slowdown, indicating that two federal funds rate cuts in 2025 are a reasonable base case. He highlighted recent data showing cooling consumer spending, weakening job numbers, and generally declining inflation, suggesting the need to start adjusting rates as soon as September. Kashkari's stance aligns with other Fed officials signaling support for rate cuts to address slowing economic activity and maximize employment amid persistent uncertainties such as the impact of President Trump's tariffs. The odds of a September rate cut have risen significantly, reflecting increased market expectations for easing monetary policy. Kashkari emphasized reliance on data he trusts, underscoring a cautious but prepared approach to monetary adjustments in response to the evolving economic landscape. His comments follow a broader shift within the Fed toward potential rate reductions this year to support economic stability.