Fed's Kashkari wants to see 'many more months' of good inflation data before cutting rates

Minneapolis Federal Reserve President Neel Kashkari said Tuesday that central bank policymakers should wait for significant progress on inflation before they start to cut interest rates. Asked during an interview with CNBC what conditions are needed for the Fed to reduce rates this year, Kashkari said: "Many more months of positive inflation data, I think, to give me confidence that it’s appropriate to dial back.

Although policymakers left the door open to rate cuts later this year in their post-meeting statement, they also stressed the need for "greater confidence" that inflation is coming down before easing policy. Since then, there has been some evidence that inflation is starting to ease again, albeit slowly. The April consumer price index showed that inflation cooled slightly to 3.4%, down from 3.5% the previous month, alleviating investor concerns that prices were heating up again.

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