Fed Kashkali expects to cut interest rates twice this year

Odaily Planet Daily News Minneapolis Federal Reserve Bank President Kashkali said he supports the Federal Reserve's decision to cut interest rates this week and writes two more rate cuts this year into his personal forecast. “I think the risk of a sharp rise in unemployment is enough to prompt the commission to take action to support the labor market,” Kashkali wrote in an article published on his Fed’s website on Friday. Federal Reserve officials cut interest rates by 25 basis points at Wednesday's interest rate meeting, the first rate cut since December, citing the need to support a more fragile job market. The Minneapolis Fed chief has no voting rights on monetary policy this year, but is involved in discussions by the Federal Open Market Committee. Previously, he predicted that the total interest rate cut will be twice in 2025. The Fed will also hold a policy meeting this year in October and December. Kashkari added that the Fed should not “preset a set path for a series of interest rate cuts.” If the labor market is more resilient than it seems, or inflation rises, he will support it; if the economic situation requires it, he will even consider hikes. (Jin Shi)