Fed's Kashkari expects mild rate cuts in coming quarters

Federal Reserve Kashkari said he expects the next few quarters will be ‘moderate’ rate cuts, but the sharp deterioration in the job market may prompt him to advocate faster rate cuts. Kashkari said that if we see real evidence of a rapidly weakening job market, as policymakers, may need to reduce interest rates faster than currently expected. He believes interest rates are still putting the brakes on the economy, but the strong performance of the economy suggests the neutral rate may be higher than in the past. Kashkari said he wants to keep the labour market strong while inflation falls back to the 2% target level, and the appropriate path for rates will depend on the data.