Fed's Kashkari: Wary about cutting rates

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, has defended Fed Chair Jerome Powell regarding the recent Department of Justice probe and alleged pressures from the Trump administration. He emphasized the importance of transparency and independence in monetary policy. Kashkari expressed that caution is warranted when considering rate cuts, suggesting that despite positive economic indicators, attention must be paid to inflation trends and the robustness of the labor market. His remarks indicate that as the market prices in potential rate cuts, a prudent approach to monetary policy is critical for ongoing economic recovery. This creates volatility in financial markets, with heightened concerns about inflation risk.