The Federal Reserve should lower its benchmark interest rate by 50 basis points to ensure it cushions the economy against slower growth, Minneapolis Fed President Neel Kashkari told The Washington Post on Sept. 24.
Kashkari, who has been among the Fed's most dovish members since he joined in January 2016, told the newspaper that the central bank "needlessly raised interest rates" in past years and made the economy more vulnerable to outside shocks.
There is an easy case to be made that the Fed should cut rates by 50 basis points, Kashkari said, pointing to softer jobs figures and an inverted yield curve as two signs of slower growth. Continued trade tensions also remain a "big uncertainty" facing businesses, he added.
Kashkari does not vote this year on the Federal Open Market Committee but will rotate into a voting spot in 2020. The FOMC cut rates by 25 basis points on Sept. 18 for the second time this year, though Kashkari said he had advocated for a more aggressive rate cut at the committee meeting.
Fed officials have been divided over their next steps, with some arguing it is too early for the Fed to be cutting rates and others favoring more modest easing than what Kashkari has called for.
