Headline: Fed's Kashkari: Sharp Deterioration in Labor Markets Could Prompt Swifter Rate Cuts

Minneapolis Fed President Neel Kashkari reiterated a call for "modest" interest rate cuts over the "next few quarters," advocating for a gradual approach to rate reductions. However, Kashkari emphasized that sharp deterioration in labor markets could prompt him to support faster rate cuts.

"We want to keep the labor market strong and bring inflation back to our 2% target," Kashkari stated, adding that the appropriate path for interest rates will be "data-dependent."

Kashkari noted, "If we see evidence of the labor market weakening, such as clear signs of rapid deterioration, that would lead me, as a policymaker, to think, 'Hey, maybe we should reduce our interest rates faster than I currently expect.'"

The next meeting of the Federal Open Market Committee is scheduled for November 6-7.