During an interview with CBS News on Sunday, Neel Kashkari, President of the Minneapolis Federal Reserve, responded to Bank of America’s forecast of a potential Fed interest rate reduction later this year. According to Bank of America, the Fed is expected to decrease rates once in December. Kashkari expressed agreement with this prediction, stating that it is consistent with the Fed’s Summary of Economic Projections, which also anticipates a single rate cut in 2021. He stressed the importance of gathering more data on inflation, the economy, and the labor market before making any decisions, emphasizing that any rate cut would depend on this information. Kashkari mentioned that the Fed is well-positioned to carefully assess the necessary data and is likely to make a decision towards the end of the year.
