A Federal Reserve official on Thursday raised the possibility the central bank may not cut interest rates at all in 2024, deflating Wall Street’s expectations that several reductions could be in store later this year.
“If we continue to see inflation moving sideways, it would make me question whether we needed to do those rate cuts at all,” said Federal Reserve Bank of Minneapolis President Neel Kashkari in an interview with Pensions & Investments magazine that was broadcast on LinkedIn.
Kashkari, who said he had previously predicted two rate cuts this year, added, “If we continue to see strong job growth, strong consumer spending and strong GDP growth, then that raises the question in my mind, “Well, why would we cut rates?’ Maybe the dynamics we have right now are sustainable.”
Kashkari’s comments come a day after Fed Chair Jerome Powell said the central bank is …