Federal Reserve President Has a Warning About Interest Rates in 2024

Minneapolis Federal Reserve Bank President Neel Kashkari said Tuesday that policymakers at the U.S. central bank should wait for “many more months” of data showing inflation is trending down before lowering interest rates, while expressly not ruling out even more rate hikes if price pressures once again build steam. Mr. Kashkari’s remarks, made during an interview with CNBC and at a Barclay’s event in London on May 28, are significant given Mr. Kashkari’s reputation for leaning dovish, meaning tending to advocate for looser monetary policy settings, or lower rates. The Minneapolis Fed chief’s remarks suggest that market expectations for the central bank to lower interest rates at some point in 2024 may end up dashed on the rocks of persistently high inflation—especially in light of recent economic data pointing to prices pressures rising again. For instance, data released on May 28 by The Conference Board indicates that 12-month inflation expectations among U.S. consumers have increased to 5.4 percent, which is nearly three times higher than the Fed’s 2 percent target....