Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, speaks during an interview with Reuters in New York City, New York, May 22, 2023.Mike Segar | ReutersMinneapolis Federal Reserve President Neel Kashkari said Wednesday that he expects the central bank to cut rates only a few times this year, contrary to market expectations.”Sitting here today, I would say, two or three cuts would seem to be appropriate for me right now,” he said during a CNBC “Squawk Box” interview. “But again, I don’t want to prejudge things, but that’s, that’s my gut, based on the data we have so far.”Markets have been pricing in an aggressive path this year for the Fed, with the first cut happening as soon as May, with five total quarter percentage point reductions happening before the end of the year, according to the CME Group’s FedWatch measure of futures pricing.However, multiple Fed officials have been pushing back on that narrative. Fed Chair Jerome Powell a week ago and again during a “60 Minutes” interview that aired Sunday CBS all but completely took a March cut off the table and said he expects policymakers to move carefully as they measure the progress of inflation against broader economic growth.”We just need to look at the actual inflation data to guide us,” Kashkari said. “So far, the data has been resoundingly positive. I hope it continues. And then the question will simply be, at what pace do we then start to adjust rates back down?”He added that there are “compelling arguments to suggest we could be in a longer, higher rate environment going forward.”Kashkari is a nonvoting member this year on the rate-setting Federal Open Market Committee.This is breaking news. Please check back here for updates. …
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[mwai_chat context=”Let’s have a discussion about this article:nnNeel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, speaks during an interview with Reuters in New York City, New York, May 22, 2023.Mike Segar | ReutersMinneapolis Federal Reserve President Neel Kashkari said Wednesday that he expects the central bank to cut rates only a few times this year, contrary to market expectations.”Sitting here today, I would say, two or three cuts would seem to be appropriate for me right now,” he said during a CNBC “Squawk Box” interview. “But again, I don’t want to prejudge things, but that’s, that’s my gut, based on the data we have so far.”Markets have been pricing in an aggressive path this year for the Fed, with the first cut happening as soon as May, with five total quarter percentage point reductions happening before the end of the year, according to the CME Group’s FedWatch measure of futures pricing.However, multiple Fed officials have been pushing back on that narrative. Fed Chair Jerome Powell a week ago and again during a “60 Minutes” interview that aired Sunday CBS all but completely took a March cut off the table and said he expects policymakers to move carefully as they measure the progress of inflation against broader economic growth.”We just need to look at the actual inflation data to guide us,” Kashkari said. “So far, the data has been resoundingly positive. I hope it continues. And then the question will simply be, at what pace do we then start to adjust rates back down?”He added that there are “compelling arguments to suggest we could be in a longer, higher rate environment going forward.”Kashkari is a nonvoting member this year on the rate-setting Federal Open Market Committee.This is breaking news. Please check back here for updates. …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
