Neil Kashkari, Chairman of the Federal Reserve Bank of Minneapolis. Those who joined other Federal Reserve officials to help cut interest rates by saying that two cuts in 2025 looked right.
In an interview with CNBC, he pointed out signs of slowing the US economy. Especially after the July employment report showed weakening of the labor market. This brings the chances of rate reductions in September to 90%, suggesting that it's time for Kashkari to adjust the rates right away.
ICYMI: @Minneapolisfed Watch today's interview with @Neelkashkari (August 6th) at @CNBC's @AndrewrSorkin. https://t.co/jscbkg1gfu
– Minneapolisfed (@minneapolisfed) August 6, 2025
Kashkari responds to economic signals
His comments show a shift from the previous Fed's view that the labor market is strong enough to slow down cuts until the impact of Trump's tariffs on inflation becomes more clear.
Kashkari dismissed the allegation that President Trump's employment data has been manipulated and standing by the numbers to avoid talking about Trump's personnel choices.
San Francisco Fed President Mary Daly has also recently indicated it was time to cut interest rates. It shows a growing agreement among Fed leaders. The economy is hit, and the latest employment report shows clear signs of the problem. Press Fed to reconsider its unrated stance.
Neel Kashkari's support for two interest rate cuts this year shows that the Fed is preparing to face these economic challenges directly.
