Fed’s Kashkari Says Stronger Economy Could Mean Fewer Rate Cuts

Federal Reserve Bank of Minneapolis President Neel Kashkari said a strong economy and higher productivity growth may drive the US central bank to cut interest rates less than previously expected.

Kashkari, in his first public remarks since he and his colleagues lowered interest rates earlier this week, indicated it was too early to determine whether policies from the incoming Trump administration and the new Congress would stoke inflation and ultimately lead to fewer rate reductions. He said the Fed will need to wait and see what policies actually materialize before factoring them into their analysis.