Fed's Kashkari: possibly only a single rate cut in 2024

According to Minneapolis Federal Reserve (Fed) President Neel Kashkari, markets may be overstepping their rate cut expectations, highlighting the disconnect between the US' current economic situation and investors' broader rate expectations.

Key highlights:

  • Fed's Kashkari currently thinks only two rate cuts overall, and possibly only one in 2024.
  • The base case is no more rate hikes, but another inflation flareup could justify a rate hike.
  • If inflation proves to be more entrenched than initially thought, the first move is to hold higher for longer.
  • Fed's Kashkari had initially expected two rate cuts through 2024 in December, hard to see how he would expect more rate cuts now.
  • If the US economy continues to be healthy, why would Fed cut rates?
  • The US labor market continues to move into better balance.

EUR/USD tests five-week high after Fed Powell affirms policy loosening likely this year

EUR/USD tested into its highest bids since late January, briefly crossing 1.0900 to tap 1.0915 before settling back slightly but still well into the green for Wednesday.
अधिक पढ़ें Previous

Gold hits record high amid Powell’s rate cut signals, geopolitical tensions

Gold rallied for the fifth straight day and reached an all-time high (ATH) at $2,152.24 during the North American session amid US Federal Reserve Chair Jerome Powell's congressional testimony at Capitol Hill.
अधिक पढ़ें Next