Fed/Kashkari: The Neutral Interest Rate May Have Increased

Forex - The Fed is expected to lower interest rates in December and continue this recent trend with four additional cuts in the new year. However, Minneapolis Fed President Neel Kashkari has stated that this is not guaranteed. Speaking at the 2024 Yahoo Finance Invest, Kashkari said, "We need to see what the data tells us." He added, "If we are in a structurally higher productivity environment, that suggests to me there is less room to cut rates until we eventually return to a neutral level. I’m not saying we are very close to neutral right now, but considering the destination, we might not be able to move down as much."