Fed’s Kashkari: Labor Market Slowdown Demands Two More Rate Cuts Now

Wall Street's favorite dovish Fed voice just doubled down.

Neel Kashkari argues recent employment data shows clear cooling—paving way for aggressive monetary easing. The Minneapolis Fed president sees two consecutive cuts as necessary insurance against economic softening.

Markets pivot on every jobs report these days, yet somehow still get surprised when central bankers do what they've been telegraphing for months. Classic.

Watch for ripple effects across risk assets as liquidity expectations shift. Crypto doesn't wait for permission—it anticipates.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

“I believe the risk of a sharp increase in unemployment warrants the committee taking some action to support the labor market,” Kashkari wrote on Friday.

Kashkari Downplays Inflation Risks

Kashkari doesn’t get to vote in this year’s FOMC meetings but will have a vote in 2026. His support for two additional rate cuts in 2025 echoes the majority view among voting FOMC officials. That WOULD put interest rates between 3.50% and 3.75%.

Furthermore, Kashkari expects inflation to stay around 3% unless tariff rates rise substantially or the supply of goods and services is disrupted. “For me, the more likely risk is a rapid further weakening of the labor market,” Kashkari wrote.