Federal Reserve Bank of Minneapolis President Neel Kashkari said in an interview with CNBC that the U.S. central bank' 50-basis point interest rate cut was just acknowledging that let's take a larger step toward neutral because policy is still tight. The official also added that he sees the monetary policy as still being net-tight even after an outsized rate cut.
In addition, Kashkari said that nobody at the Fed believes that it is "mission accomplished" on inflation. However, he admitted that he is worried more about an upshift in the U.S. labour market weakness now than there being an upshift in inflation.
Minneapolis Fed president also said that he thinks going forward the Fed will take smaller steps on balance. He also revealed he had pencilled in an additional 50 basis points of easing in 2024 on the dot plot.