by Ann Saphir
The Globe and Mail
Minneapolis Federal Reserve president Neel Kashkari said Sunday it’s a “reasonable prediction” that the U.S. central bank will cut interest rates once this year, waiting until December to do it.
“We need to see more evidence to convince us that inflation is well on our way back down to 2 per cent,” Mr. Kashkari said in an interview with CBS’s Face the Nation.
The Fed last week held its benchmark policy rate in the 5.25-per-cent to 5.50-per-cent range, where it has been since last July, to keep continued pressure on the economy so as to cool inflation. It also published projections that showed the median forecast from all 19 U.S. central bankers was for a single interest-rate cut this year.