Minneapolis Fed President: "Confidence in Rate Cuts Diminished by Iran War"

Kashkari Reaffirms Support for Fed Chair Jerome Powell

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated that his confidence in a rate cut has diminished due to the attacks involving the United States, Israel, and Iran.

According to Bloomberg on March 3 (local time), President Kashkari remarked at the Bloomberg Invest Conference held in New York, "Given the current geopolitical situation, we need to gather much more data," expressing this view.

President Kashkari pointed out that the key issue regarding inflation is energy prices. Following the onset of Iranian airstrikes, international oil prices have surged, and concerns about inflation are growing as expectations rise that the war may develop into a prolonged conflict.

Kashkari noted, "At this point, it is too early to determine how this will affect inflation or how long the impact might last."

The market expects the Federal Reserve to keep the benchmark interest rate unchanged at the Federal Open Market Committee (FOMC) meeting in March.

Meanwhile, President Kashkari once again expressed his support for Federal Reserve Chair Jerome Powell, who has been at odds with President Donald Trump. While Chair Powell's term is set to expire this coming May, his term as a Fed Board Governor continues until January 2028. Although it has been customary for Fed Chairs to resign from the Board after stepping down as Chair, there is speculation that Powell may serve out his full term as a Board Governor.

This content was produced with the assistance of AI translation services.