Fed/Kashkari: A 25 Basis Point Rate Cut in December Seems Reasonable

Forex - Minneapolis Fed President Neel Kashkari stated that he is open to lowering interest rates again next month. Speaking to Bloomberg TV, Kashkari noted, "This is still a reasonable thought. Given what I know today, I am still considering a 25 basis point cut in December - this is a reasonable discussion for us." He mentioned that he is trying to understand how much downward pressure borrowing costs are putting on the economy and where inflation is heading. Kashkari added, "I have some confidence that inflation is slowly trending down, and the labor market continues to remain strong." Fed policymakers will receive a new report on the targeted inflation indicator this Wednesday and will have the latest monthly employment market data and consumer price report ahead of their next meetings on December 17-18.