Any inflation surprises might give Fed 'pause' about cutting in December: Kashkari
Published On Nov 12, 2024, 3:37 PM
Minneapolis Fed President Neel Kashkari indicated that unexpected rises in inflation could lead the Federal Reserve to reconsider plans for interest rate cuts in December. Following recent rate cuts, Kashkari emphasized that the upcoming Consumer Price Index (CPI) release will be key to the Fed's decision-making. The forecasted core inflation rates have remained high, particularly driven by housing costs. He expressed confidence that housing inflation would stabilize in the future, but acknowledged uncertainties regarding the effects of new U.S. economic policies under President-elect Trump on inflation and the Fed's subsequent actions.
Stock Forecasts
XLF
Negative
Inflation surprises could impact Fed policy significantly, causing investors to be cautious with financial stocks.
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