Overview

• Minneapolis Fed President Neel Kashkari said two quarter-point cuts by year-end would be reasonable given the U.S. economy’s recent slowdown.
• He cited a weak July jobs report and downward revisions to prior employment data as evidence that growth is cooling.
• Kashkari warned that unclear timing of tariff effects on consumer prices adds urgency to the case for rate reductions.
• Two Federal Open Market Committee dissents in July reflected concerns that rising import tariffs could keep inflation elevated.
• San Francisco Fed President Mary Daly said the central bank cannot wait for perfect clarity and will likely need to ease policy in coming months.