Minneapolis Fed President Neel Kashkari reiterated his view that two rate cuts in 2025 remain a reasonable base case, telling CNBC today that “the economy is slowing — and that means, in the near term, it may become appropriate to start adjusting the federal-funds rate.” The comment aligns with growing expectations for a September cut, especially after last week’s soft jobs data.
However, Kashkari’s remarks are broadly consistent with the position he laid out in June, when he wrote in an essay that tariff impacts may be more muted than feared due to corporate adaptations and exemptions. At the time, he argued that these offsetting forces would allow inflation to ease gradually, supporting a measured policy adjustment.
In both June and today’s comments, Kashkari has signaled a preference for patience but also preparedness. Barring any surprises, his base case still assumes a September move, followed by another later in the year.
