Kashkari Champions Rate Cuts Amid Political Pressure

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, justified recent rate cuts due to job market concerns and dismissed fears about political influence on Fed decisions. Amid recent bond market developments, Kashkari defended the Fed's independence despite political pressure from the Trump administration.

Federal Reserve Bank of Minneapolis President Neel Kashkari has defended the Fed's recent interest rate cuts amidst growing political pressure from the Trump administration. He argued that ongoing risks in the job market warranted the reduction, and similar cuts are likely in the next meetings.

Despite political challenges, Kashkari emphasized the importance of Fed independence, pointing to the stable bond markets as evidence of public trust. He rebuffed any notion of politicization, even as Stephen Miran joined the board. With congressional backing, the courts are positioned to safeguard the Fed's autonomy.

Although not currently a voter on interest rate policy, Kashkari revised his stance on rate cuts and expressed confidence in their necessity to counteract unemployment, allaying fears of inflation spikes due to tariffs. As job creation dwells, maintaining the Fed's independence remains a shared objective across political aisles.

(With inputs from agencies.)