Fed's Kashkari sees two more rate cuts this year as likely appropriate, given labor market risks

In June, Kashkari had felt that two quarter-point rate cuts were all that would be needed for the whole year, but a drop in job creation since then that could only be partly explained by falling immigration and likely signals weakening demand for labor helped change his mind, he said in an essay. "I believe the risk of a sharp increase in unemployment warrants the committee taking some action to support the labor market," Kashkari wrote, adding that he also now feels there's little risk of a sharp rise in inflation from tariffs.