Fed's Kashkari: Pace of rate cuts expected to slow in coming quarters

US Minneapolis Fed President Kashkari reiterated his preference for a slower pace of rate cuts in the coming quarters. He supported the Fed's larger-than-usual rate cut last month, but said he expects smaller cuts in future meetings. ‘At this point I'm forecasting more modest rate cuts over the next few quarters to get near the neutral level, but that will depend on the data,’ Kashkari said. He was referring to interest rate levels that would neither stimulate nor constrain the economy. He said faster action would require seeing ‘tangible evidence that the labour market is weakening rapidly’.