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In an interview with the media on Saturday, Minneapolis Fed President Neil Kashkari said that this matter (rate cuts) is really not dependent on short-term plans between Congress and the new administration - it's really about productivity and economic growth. If that growth can be sustained and our economy becomes more structurally efficient, then that tells me that we may not cut rates as much.
Kashkari, president of the Federal Reserve Bank of Minneapolis, reiterated his preference for a slower pace of interest rate cuts in the coming quarters. He backed the Fed's larger-than-usual rate cut last month but said he expected smaller cuts at future meetings. "Right now I'm forecasting more modest rate cuts in the coming quarters to be near neutral, but that will depend on the data," Kashkari said, referring to interest rates that neither stimulate nor constrain the economy. He said faster...
