On August 6, Fed official Kashkali indicated that despite a clear economic slowdown suggesting two rate cuts this year, rising tariffs-driven inflation might prompt a pause or even a hike, emphasizing the pivotal role of unemployment data.
Fed official Kashkali announced on August 6 that amid a clear economic slowdown, the Fed may implement two rate cuts this year. However, if tariffs-driven inflation rises, it could lead to a pause or even a hike. He stressed that while inflation outcomes remain uncertain, recent economic indicators support policy adjustments and that monitoring unemployment data is crucial despite potential revisions.