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The Federal Reserve is in a good position to monitor economic data and be patient about cutting interest rates, Minneapolis Bank President Neel Kashkari said Sunday.
“We need to see more evidence to convince us of that “Inflation is on our way back to 2%,” Kashkari said on CBS' Face the Nation. “We're in a very good position now to take our time, get more inflation data, get more data about the economy, the labor market, before we make any decisions.”
Federal Reserve policymakers last week lowered their estimate for rate cuts this year to one, down from three estimates in March. They are looking for more signs that inflation is slowing to the 2% target before starting to lower borrowing costs.
Kashkari said any interest rate cut would likely take place until the end of the year.
Data last week showed growth in core consumer prices, which exclude volatile food and energy categories, slowed for the second month in a row.
The core CPI rose 0.2% from April, according to data from the Bureau of Labor Statistics. The annual index rose by 3.4%, the slowest pace in more than three years.