Fed's Kashkari: Policy rate could be 4.4% by the end of 2024, 3.4% by the end of 2025

Kashkari, chairman of the Federal Reserve, said there was little evidence that recessionary forces were building or that inflation could unexpectedly rise. He noted that while the Fed's policy remained tight, there was uncertainty about the extent of future tightening. Kashkari stressed that the Fed's interest rate path would depend on incoming data and expected the policy rate to be 4.4% at the end of 2024 and 3.4% at the end of 2025. He also said that the 50 basis point rate cut was the right decision to reflect inflation progress and a slowing labor market. (Jinshi)