Minneapolis Fed President Suggests Potential Interest Rate Cut in December, Emphasizes Need to Evaluate Data Before Critical Decision

President of the Minneapolis Federal Reserve, Neel Kashkari, suggested that the U.S. central bank might lower interest rates once this year, likely in December. He emphasized the importance of evaluating further economic and labor data before making any monetary policy adjustments. Kashkari also addressed concerns about high borrowing costs impacting home ownership, noting that reducing interest rates prematurely could inflate house prices rather than improve affordability. The optimal strategy, he suggested, is to control inflation effectively, thereby stabilizing the economy and potentially aiding the housing market indirectly.