Neel Kashkari Joins Rate Cut Camp, Sees Two Cuts As ‘Appropriate’ In 2025

According to him, the central bank needs to respond to the slowing economy and would have the option to hike rates if tariffs do impact inflation at a later date.

Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, said Thursday that the U.S. economy is slowing and that it’s not clear what impact President Donald Trump’s tariffs will have on inflation.

However, it “still may be appropriate in the near term to begin adjusting policy rate,” he said in an interview with CNBC. According to him, two rate cuts this year “still seems appropriate.”

He stated that the central bank needs to respond to the slowing economy, noting that “If inflation does rise because of tariffs, the Fed could pause or even hike [rates].”

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