Key Fed offi­cial rais­es pos­si­bil­i­ty that inter­est rates won’t be cut in 2024

A top Fed­er­al Reserve offi­cial said the cen­tral bank may not low­er inter­est rates as expect­ed if it doesn’t see progress on low­er­ing infla­tion, a state­ment that raised fear in mar­kets.
Fed­er­al Reserve Bank of Min­neapo­lis Pres­i­dent Neel Kashkari, one of the vot­ing mem­bers of the Fed­er­al Open Mar­ket Com­mit­tee, acknowl­edged that the Fed might not cut inter­est rates this year as infla­tion remains stub­born­ly sticky. That pos­si­bil­i­ty clash­es with investors and even the Fed itself, which is pre­dict­ing com­ing rate revi­sions.
“In March, I had jot­ted down two rate cuts this year if infla­tion con­tin­ues to fall back towards our 2% tar­get,” Kashkari said dur­ing an event on Thurs­day. “If we con­tin­ue to see infla­tion mov­ing side­way …