Very unlikely Fed will cut interest rates next year – Kashkari
2022.08.03 23:05
FILE PHOTO: Minneapolis Federal Reserve Bank President Neel Kashkari poses during an interview with Reuters in his office at the bank’s headquarters in Minneapolis, Minnesota, U.S., January 10, 2020. REUTERS/ Ann Saphir/File Photo
(Reuters) – Minneapolis Federal Reserve President Neel Kashkari said on Wednesday the possibility that the U.S. central bank will pivot to cutting interest rates next year is extremely unlikely.
“Some financial markets are indicating they expect us to cut interest rates next year,” Kashkari said at an event held as part of a financial regulation conference in New York.
“I don’t want to say it’s impossible, but it seems like that’s a very unlikely scenario right now given what I know about the underlying inflation dynamics. The more likely scenario is we would continue raising (interest rates) and then we would sit there until we have a lot of confidence that inflation is well on its way back down to 2%.”
